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No. of Recommendations: 3
If you agree that Cap-weighted indices do not represent the Broad Market then what choice do we have available?

Cap-weighted does represent where the dollars are at work in the market. There is a lot more money dependent upon the earnings growth of Apple than, say, Lamb Weston (supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers).


Maybe but do Large Cap-Weighted indices represent the real Market TREND of Mechanical Investments posted here on this board?

An example of SP500(SPY) and R1000EW(EQAL) Market Trend Indicators. Note history is different unfortunately.

15-Jul-2020    TP(1w)     SMA(10)     SMA(21)     SMA(43)     DMAC(10,40)    MACD (8,40,4)  DBE(21,26)   B&H(TTM)
Weekly(SPY): Gain Bullish Bullish Bullish Bullish Bullish Bullish Gain
LastChange -
2020-04-24 2020-05-29 2020-05-29 2020-07-10 2020-06-19 2016-06-03 2020-05-08
Price(MA,Hi) 318.99 307.04 289.85 303.12 303.70 299.84 325.85 322.25
MAC,%Off,TTM - 3.9% 10.1% 5.2% 1.1% 3.1% -1.0% 8.4%
14Yr AvgDD (TTM<0) -8.7% -10.6% -6.3% -5.5% -6.6% -5.6% -15.3%
14Yr MaxDD (TTM<0) -24% -24% -23% -19% -24% -18% -47%
Signals/Yr - 2.4 1.8 0.9 0.7 1.1 0.3 2.4

 15-Jul-2020    TP(1w)    SMA(10w)    SMA(21w)    SMA(43w)     DMAC(10,40)    MACD (12,36,4)  DBE(21w,26w)   B&H(TTM)
Weekly(EQAL): Gain Bullish Bullish Bullish BEARish Bearish Bullish Loss
LastChange: -
2020-05-01 2020-05-29 2020-06-05 2020-03-20 2020-03-13 2019-11-29 2020-06-12
Price(MA,Hi) 31.18 30.54 28.45 30.93 30.87 30.34 34.32 31.52
MAC,%Off,TTM - 2.1% 9.6% 0.8% -1.1% -1.0% -7.8% -3.4%
5Yr AvgDD (TTM<0) -10.3% -9.5% -8.7% -9.1% -9.0% -6.3% -6.9%
5Yr MaxDD (TTM<0) -42% -39% -41% -35% -23% -34% -32%
Signals/Yr - 4.4 3.2 1.6 1.4 0.8 0.8 4.2


GD_
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