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Sector Heatmap Help



The heatmap displays an overview of the total market by major sectors color coded according to the selected option. The color coding ranges from dark red (negative) to dark green (positive). The figures displayed alongside each sector correspond to the color coding except the colors always depict an absolute measure whereas the figures may be relative measures (e.g. ranking).

Returns:

  Colors correspond to the return over the selected period, optionally adjusted by the annual market beta, and normalized by the volatility of each sector over the last year. The return (in %) is displayed alongside each sector.

Volume Confirmation:

  A statistical comparison between the change in price at the sector level the and the Money Flow (the days change in price multiplied by the days volume at the individual stock level, aggregated to the sector level). The signal also has a breadth component (so that an individual stock alone cannot generate a signal) and is normalized for the price volatility at the sector (and stock) levels.

1-Day Signal:

  Intuitively represents whether there is an excess amount of volume accompanying the price change, either up or down, on the day.

2-Day Signal:

  The 2-day exponential moving average of the 1-day signal. This gauges whether a 1-day signal reversal is strong enough to produce a 2-day signal. The 2-day signal, when above 0.275 (or below -0.275), can be shown to be statistically significant for forecasting future sector returns.

Volume Confirmation Ranking:

  This captures the 1-week or 1-month momentum of Volume Confirmation signals. Each sector is ranked from 1 (best) to 100 (worst) according to the exponential moving average of the 2-day Volume Confirmation signals. The color coding reflects the absolute level of Volume Confirmation whereas the figures reflect relative rankings (or changes therein).

Relative Volume:

  The relative volume compared to the 1-year average volume. Colors show if there is above or below average volume (not related to performance).

Above Moving Average:

  Colors and figures correspond to proportion of stocks in each sector above the selected moving average (measured in trading days) or the 1-week change therein.

52-Week Highs Less Lows:

  Colors and figures correspond to the proportion of 52-week highs less the proportion of 52-week lows for each sector.

Short/Long Cycles:

  Colors correspond to a current cycle up-phase (green) or cycle down-phase (red). The shade of the color corresponds to either the fit of the cycle (darker color for better fit) or the time remaining of the cycle up/down-phase (darker color for longer time remaining). The figures are either xU/y or xD/z% where x the number of days left, U/D is Up or Down, y is the length of the cycle from bottom to bottom, and z is the cycle fit.

Composite Cycles:

  Colors correspond to a current up or down-phase in both short and long cycles.

 


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