|
The Tsupitero
Index
As of the close last
Wednesday, 1/12/2013
Year to Date Performance (2013) -
1.19%

charts are courtesy of Metastock
Legend:
blue lines - range for Tsupiteros
dotted blue lines
- range for Position Traders
red lines - important trend lines
The
The Tsupitero Index is an equally-weighted stock index composed of
25 of the most active and volatile stocks in the Philippine Stock
Exchange from Jul 1, 2012 to Dec 28, 2012. Stocks included in this index have
an average value turnover of at least P10,000,000.00 and an average true
range of at least 2.5%. Blue chips were intentionally not included in
the index.
The stocks
included in this index are the following:
| ABSP |
AGI |
APM |
BEL |
BLOOM |
| CAL |
ELI |
FGEN |
FLI |
GMAP |
| JGS |
LC |
LPZ |
LR |
LTG |
| MA |
MEG |
OV |
PGOLD |
PIP |
| PNB |
PX |
PXP |
RLC |
SECB |
The Tsupitero
Index is calculated in the following manner. First, average all the
prices. Next, add all of the ratios together. Then,
divide the day's open, high, low and closing prices by the previous
day's close. Finally, the ratio is
multiplied by 100 to convert the ratio into a percentage value. The result is the exact
percentage gain year-to-date had a Tsupitero invested an equal peso
amount on the 25 stocks listed above.
The purpose of
The Tsupitero Index is brought about by the need to form an index
that is representative of stocks that Tsupiteros usually trade. The
composition of the index is ideal for Tsupiteros using Technical
Analysis in their trading because the stocks included in the index are
the most liquid and the most volatile. Technical Analysis works best on
stocks that are very active, while the most astute Tsupiteros would only
trade the most volatile stocks to maximize their returns. Blue chips
were intentionally not included in the index because: (1) the present
indices of the PSE already tracks their performances; (2) due to the
fact that the present indices of the PSE are market-capitalization
weighted, the Blue chips constitute a huge majority of the movements,
that it almost totally ignores the movements of other stocks in the PSE;
and, (3) Tsupiteros usually do not trade the Blue chips since they are
not as volatile. Finally, an added purpose of the index is to present a
typical year-to-date performance of a Tsupitero in the PSE. Tsupiteros
may also use this index as a gauge of whether their returns are above or
below par.
|