XJO calculation vs. individual stock prices

[Brad_DXB]

I'm trying to understand the calculation of the XJO compared to the individual stock prices it represents. (I realise it is weighted by market capitalisation)

XJO rarely gaps up or down overnight, but the individual stocks do gap a lot. Once these stock gap down, it takes a long time (relatively) for XJO to catch up.

Case in point was the open on the 31st July. I reviewed the largest 20 stocks from XJO on the 31st July (which represent 50% of XJO capitalisation), and these collectively gapped down 1% on market open. XJO did not gap down, and then took a full 10 minutes to show this 1% move.

So it seems to me that XJO is very slow at recalculating the correct index value.

Is my understanding correct or have I missed something here?

Appreciate any insights!

 

[cutz]

The ASX stocks have a staged opening between 1000am and 1010am, that's what you're seeing.

This explains it in detail https://www.asx.com.au/about/trading-hours.htm#:~:text=Opening Phase Opening takes place at 10:00 am,to the starting letter of their ASX code:

 

[Brad_DXB]

Super, thank you!

 

[KevinBB]

This chart shows actual NASDAQ vs % of stocks in NASDAQ above their 200 day moving average. (source: zerohedge on Twitter)

Does anyone have the resources to replicate this chart for the Australian S&P ASX 200 index (XJO)?




Thanks,
KH

 

[Roller_1]

Blackline is the percentage of stocks above the 200 day moving average and the orange line is the XJO.

Norgate have built in Tickers with this data. #XJO%MA200.au

 

[divs4ever]

you might try the ASX listed ETF STW as a guide ( comparison to match a stock price to )

don't be surprised if most graphs look bad for the individual stock , there is a suggestion only a small group of stocks are keeping the XJO high




i suspect there is a direct rival that mimics the straight XJO as well , take care several 'tweak ' the index tracked or the way portfolio weighting in calculated

but it should be educational to many

cheer

 

[divs4ever]

you might try the ASX listed ETF STW as a guide ( comparison to match a stock price to )

don't be surprised if most graphs look bad for the individual stock , there is a suggestion only a small group of stocks are keeping the XJO high




i suspect there is a direct rival that mimics the straight XJO as well , take care several 'tweak ' the index tracked or the way portfolio weighting in calculated

but it should be educational to many

cheer

 

[divs4ever]

sorry about that seems the ISP has the stutters again

can't make for the IoT to become mission critical to government infrastructure ( sarcasm )

 

[KevinBB]

Blackline is the percentage of stocks above the 200 day moving average and the orange line is the XJO.

Norgate have built in Tickers with this data. #XJO%MA200.au

View attachment 134155

Thanks for this. I didn't expect to see this difference in the Australian market considering that we are quite different from the US market.

It looks like we could be getting back into a large cap cycle again.

KH