Top-down Approach – Strategy of Professionals (written by Daniel Kertcher)
Regardless of which method you use to choose your shares, be it technical analysis, fundamental analysis or gut feeling, the most successful share traders and investors adopt a similar approach when it comes to reviewing the market, that is, a…
Top-Down Approach.
A top-down approach refers to looking at the performance of the major global economies, such as the US and European markets. We then focus on the overall performance of our local market and see how it is performing in light of the other markets around the world. We then study the performance of the different sectors that make up our local market, such as mining or retailing. Finally, we compare and study the individual shares that make up the sectors.
By adopting this approach, we can gain a fair idea of how individual shares will perform in comparison to the larger markets around the world. Looking at the performance of just one company can be likened to studying just one tree in the forest. For example, looking at the graph of a particular share may show a sudden fall. Does this indicate bad news or an adverse shift in fundamentals within the company, or was the company simply caught up in a general market correction? It is important to understand what is happening to the forest and for that, broader measures are needed.
If studying the forest is important for the average investor or trader, it is vital for institutions and managed funds that have large portfolio holdings. The huge growth of the managed funds industry requires not only that all stock exchanges provide a broad benchmark to measure market movement, but several subindices as well, to show how each segment of the overall market is performing in relation to the whole.
To study the performance of different international markets, we use indices. An index is simply an arbitrary benchmark designed to measure the movement of some broad compilation of shares. Just as a datum is an arbitrary horizontal mark set to measure ocean tides, an index serves a similar function for an exchange: it shows whether the market tides are rising or falling.
It is for the exchange concerned to decree which shares or commodities are included in an index, how they are weighted (the basis for comparison between them) and what base-line is used initially to provide their benchmark. Once this figure has been set and the reference point established, then future movements will alter this figure up and down, in accordance with what is happening in the underlying markets.
The most popular Australian index is the All Ordinaries (All Ords). The All Ords is made up of approx. 260 companies. If the All Ords is rising, it means that the overall Australian economy is strengthening. Other popular indices include the ASX 200, which is a measure of the top 200 companies in Australia.
The Dow
The most famous index in the world is the Dow Jones Industrial Average. It is the most widely-watched of the US market indices, even though it is not representative of the market as a whole. It consists of only the top 30 companies on the New York Stock Exchange, yet these Dow stocks represent some of the biggest companies on the planet. It has often been said that when the Dow sneezes the rest of the world catches a cold. If something violent happens to the Dow, the impact will almost certainly be felt by other markets the next day.
© Platinum Pursuits 2006. All rights reserved.
Disclaimer
The decision to invest or trade and the method selected is a personal decisions and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of our services for your circumstances. Platinum Pursuits Pty Ltd is an Authorised Representative (Rep. No. 286343) of Option Partners Pty Ltd, AFSL 298347.
Information contained in all Platinum Pursuits products and websites is intended to be general advice only and should not be relied upon as financial product advice. You are warned that:
1. The advice has been prepared without taking into account your objectives, financial situation or particular needs; and
2. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs; and
3. If the advice relates to the acquisition, or possible acquisition, of a particular financial product – you should obtain a Product Disclosure Statement relating to the product and consider the Statement before making any decision about whether to acquire the product.
Equities and derivatives trading involves risk, Investors need a broker to trade equities and derivatives, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Investors are required and advised to request for and read the product disclaimer statements as provided by the particular profile they trade with.
None of the information and data contained in this presentation or the Platinum Pursuits websites (www.platinumpursuits.com or www.ppmember.com) nor any opinion expressed constitutes a recommendation to purchase or sell a security, or to provide investment or financial product advice.
The information contained on all Platinum Pursuits products is provided for general informational purposes, as a convenience to the customers of Platinum Pursuits Pty Ltd. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Platinum Pursuits Pty Ltd is not engaged in rendering any legal or professional services by presenting this general information or by placing these or any general informational materials on their websites.
Platinum Pursuits Pty Ltd and its associates do not receive any remuneration (including commission) or other benefit from third parties by virtue of the advice provided.
Platinum Pursuits Pty Ltd is an Authorised Representative (286343) of The International Securities and Derivatives Group Pty Ltd ABN 22 103 552 683, AFSL 227544.
About the Author
Passionate and energetic, Daniel Kertcher is an investment specialist with over 15 years experience in property, stocks, options trading, CFDs (contracts for difference), technical and fundamental analysis, futures and commodities trading.
Casio G-Shock Rescue Series All Black GW-7900B with Tide Graph and Moon Phase
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Casio G-Shock GLX5600-4 Tide Graph Moon Date World Time Mens Red Sport Watch NEW $89.00 |
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Casio G-Shock GW-7900-1 GW7900 Multiband 6 Tide Graph and Moon Phase Tough Solar $77.00 |
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AUSTRALIAN SELLER CASIO W-753-3AV W753 W-753 FISHING TIDE GRAPH 12-MONTH WARANTY $32.06 |
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AUSTRALIAN SELLER CASIO W-753D-1 W753D W753 FISHING TIDE GRAPH 12 MONTH WARRANTY $40.82 |
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100% Casio Tough Solar Tide graph Moon Phase W-S210HD $39.49 |
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CASIO GLX6900-1 G-Shock Black Glossy G-LIDE Tide Graph Men’s Watch NEW! $51.00 |
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NEW CASIO G-SHOCK G-7900 G7900-1 TIDE GRAPH/MOON DATA WATCH $85.00 |
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AUSTRALIAN SELLER CASIO W-753-1AV W753 FISHING WATCH TIDE GRAPH 12 MONTH WARANTY $32.06 |
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Men’s Casio G-Shock G-Lide Tide Graph Digital Watch – Model: GLX5600-7 $99.00 |
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G SHOCK G-LIDE TIDE GRAPH GLX5600-4 SHINNY RED NEW $89.00 |
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G Shock G-Rescue G7900-1 BLACK Tide Graph Tough Sports $92.50 |
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G-Shock G-Lide – GLX6900-7 – White and Teal – Tide Graph and Moon Data $72.99 |
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CASIO PROTREK PRG130 TOUGH SOLAR TIDE GRAPH 660FT WATER RESISTANT WATCH $89.00 |
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CASIO G-SHOCK ALL RED X-LARGE FACE TIDE GRAPH G7900A-4 BRAND NEW ORIGINAL BOX $127.00 |
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CASIO G SHOCK GREEN DIGITAL MEN’S WATCH MOON & TIDE PHASE GRAPH ALARM BACKLIGHT $107.99 |
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Casio G-Shock GLX-5600 GLX5600-1 G-Lide White Tide Graph Watch Shock Resistant $49.00 |
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AUSTRALIAN CASIO W-753-2AV W753 W-753 FISHING WATCH TIDE GRAPH 12 MONTH WARRANTY $32.06 |
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CASIO PROTREK PRG130 TOUGH SOLAR TIDE GRAPH 660FT WATER RESISTANT WATCH $34.00 |
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GSI Super Quality Outdoor Fishfinder Wrist Mount Digital Watch – Graphic Charts, Tide, Sun And Moon Data – Timer, Alarms, Chronograph And Calendar Functions – For Fishing And Sports $29.99 The New Fishing Alarm From GSI Means No More Casting Randomly Looking for Fish – The Answer Is Right On Your Wrist! Built In Sensors Pick Up All Environmental Data Required For Successful Fishing, And Point Out The Highest Favorable Spots Available. Easy, User Friendly And Affordable, It Is a Great Alternative To Other pricier Models Out There!… |
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Casio Men’s AQF100W-7BV Forester Sports Thermometer Watch $31.54 Powerfully styled and packed full of robust timekeeping and environmental features, the Casio Forester analog-digital stainless steel men’s watch offers a stylish black sports resin band that will stay comfortable during your most active sport outings. The large round stainless steel watch case measures 42mm (1.65 inches) wide, and it features an Arabic numeral and small minute index readout aroun… |
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Pyle PSKI2 Skiing Digital Watch with Clock, Ski Mode, Altimeter, Barometer, Compass, Tide, Thermometer and Timer $40.01 Skiing Digital Watch… |
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Mns Forrester Ana Digi Watch SS Slvr Brclt,, Thermometer Tide Graph,, Moon Phase 100m WR $58.39 Mns Forrester Ana Digi Watch SS Slvr Brclt,, Thermometer Tide Graph,, Moon Phase 100m WR… |
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Mns Forrester Ana Digi Watch Slvr Top Ring w/Blk Resin Band Thermometer,, Tide Graph,, Moon Phase,, 100m WR $50.79 Mns Forrester Ana Digi Watch Slvr Top Ring w/Blk Resin Band Thermometer,, Tide Graph,, Moon Phase,, 100m WR… |
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Casio Men’s AQW101-1AVCF Active Dial Multi-Task Gear Sport Watch $41.95 Ideal for the outdoor enthusiast, the Casio Men’s Active Dial Sport Watch brings you a wealth of information in a bold design. The durable, silver-tone case backgrounds the black resin bezel with screw details on the corners, and it extends to meet the strong black resin band that secures to the wrist with an adjustable buckle. A bright dial offers a wide variety of features, including a thermomet… |
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Casio G-Shock GW7900B-1 Watch With the never ending pursuit of toughness and technology, G-Shock introduces a Solar Atomic addition to the tough and rugged G-Rescue series. Already iconic for its four point protection design,large case, oversized buttons, tide & moon graphs, this new model keeps the same design philosophy of allowing for high functionality and operability, in the harshest conditions, even while wearing gloves…. |
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Casio Men’s WS210H-1AVCF Tough Solar Powered Tide and Moon Digital Sport Watch $31.96 … |
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Correspondence of the Right Honourable Edmund Burke (Volume 1); Between the Year 1744 and the Period of His Decease, in 1797 $20.39 Features: Shock Resistant 200M Water Resistant Auto EL Backlight with Afterglow Tide Graph (tide level for specific date and time) Moon Data (moon age of the input data moon phase graph) World Time 29 times zones (48 cities) city code display daylight saving on/off 3 Multi-function Alarms (1 with snooze) Countdown Timer Measuring unit: 1 second Countdown range: 1 minute to 24 hours Other: Auto Re… |
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Casio W753D1AV Mens Moon Phase Tide Graph Sport Watch $44.51 Silver Casual Sports Watch with a Metal Band. Want to know if it s high tide or low tide a full moon or a half moon? Keep in touch with mother nature while still having a sense of style. Add in the 100 meter water resistance dual time capability stopwatch countdown timer alarms and a 10year battery and this watch is truly one you can take with you everywhere. Tide Graph. Moon Phase Data. Displays moon age and phase for current or designated day. 100M Water Resistant. Auto LED Light with afterglow. Dual Time. 4 Daily Alarms and 1 Snooze Alarm. Countdown Timer. Measuring unit: 1 second. Countdown range: 1 minute to 60 minutes. Autorepeat function. 1/100 second stopwatch. Measuring capacity: 99:59 59.99 . Measuring modes: Elapsed time split time 1st2nd place times. Hourly Time Signal. Auto Calendar (preprogrammed until the year 2039). 12/24 Hour Formats. Accuracy: +/30 seconds per month. Battery CR2025. Size of case / total weight: 43.0 x 40.0 x 13.5mm / 98g. Case diameter: 42 millimeters. Case Thickness: 14 millimeters. Band material: Stainlesssteel. Band length: Mens. Band Color: Silver. Dial color: Digital. Bezel material: Stainlesssteel. Bezel Function: Stationary. |
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Casio Men’s W753D-1AV Moon Phase Tide Graph Sport Watch $27.96 Featuring an innovative moon phase display, the Casio Men’s Sport Moon Phase Tide Graph Watch #W753D-1AV keeps you in touch with Mother Nature. The digital-gray dial face is protected by a durable mineral dial window. Embellishing the dial are an easy-to-read time display, a day-date-and-month calendar, and other high-tech details including a countdown timer, a stopwatch, and an hourly time signal. Its sleek look is achieved with a silver-tone, stainless steel band, equipped with a sturdy fold-over-clasp, and other a matching 42-millimeter stainless steel case and stationary silver-tone stainless steel bezel. Presenting a sporty design, this functional timepiece encourages your celestial fascinations. Powered by quartz movement, this watch is also water resistant to 330 feet. |
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Casio Men’s Tidal Graph Tough Solar Watch $39.99 Casio Men’s Tidal Graph Tough Solar Watch . A Self Charging Solar Power system drives the new Casio W-S210 Series; a new eco-friendly timepiece that graphs Tidal movements & Moon Phases and is 100M Water Resistant. The unique power system eliminates the need for battery changes and is strong enough to power a multitude of additional functions such as 48-city World Time, 1/100th Second Chronograph, 5 Daily Alarms and more. Available in resin or stainless steel bands, this new tide tracker is sure to please on your next marine adventure. |
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Casio Aqw1001Av MoonTide Graph Sport Watch $65.16 200M Water Resistant. EL Backlight with afterglow. Moon Data (moon age of input data moon phase graph). Tide Graph (tide level for specific date and time). Dual time. 1/100 second stopwatch. Measuring capacity: 23: 59 59.99 . Measuring modes: Elapsed time split time 1st2nd place times. Countdown timer. Measuring unit: 1 second. Countdown range: 24 hours. Countdown start time seting range: 1 minute to 24 hours (1minute increments and 1hour increments). Others: Autorepeat timeup alarm. Multifunction alarms. 3 independent multifunction alarms (2 onetime alarms and 1 snooze/onetime alarm). Alarm type: Daily Alarm date alarm 1month alarm monthly alarm. Hourly time signal. Full autocalendar (preprogrammed until the year 2099). 12/24 Hour Format. Button tone operation on/off. Accuracy: 30 seconds per month. Battery SR927W x 2. Approx. battery life: 3 years. Dimensions: 48.2mm x 46.0mm x 14.5mm. |
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Nixon Watches 51-30 Tide Watch $374.95 51-30 Tide Watch |
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Baby G By Casio Blx100-7 Tide Ladies Watch $90 The mission of Casio’s watch development is to create something where there was nothing before – what Casio calls going from “0″ to “1.” By creating totally original watches, Casio adds fun and convenience to daily life and pioneers new cultural trends. “Demand-creating” watches, which create markets of their own, contribute to the greater good.Baby-G Watches – Tough Watches built Shock Proof with G-Shock Technology but in a femme style.Band Color: White Plastic, Band Width: 23mm near case, 19mm near clasp/buckle, Bezel Color: White, Case: White + -shaped, Case Finish: Polished + Plastic, Case Thickness: 13mm, Case Width: 43mm; 41mm with crown, Clasp / Buckle: Strap Buckle, Dial: White + digital, Hand Color: Black, Movement: Other + quartz, Time Zones: Dual, Water Resistance: 10 atm, Other Features: Shock Resistant, Tide Graph, World TIme, 2 Alarms (1 with snooze), Hourly Time Signal, Stopwatch, Countdown Timer, Full Auto Calendar |
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Vestal Men’s BRG002 Brig Tide and Train Black and White Digital Polyurethane Surf Watch $140 The Brig by Jordy Smith is a digital tide and train watch that can track the tide at over 200 beaches worldwide for the next 20 years. It also offers a host of other high end features like a digital tide graph that features current tide height, quick access to Vestal’s own custom training mode with “Suffer and Recover” interval timer, and Heat Mode with countdown timer. The watch strap is secured to your wrist with a new patent pending OKTOLOCK system. The OKTOGRIP raised pattern on the underside of the band means significantly less rubber contact against your skin providing greater breathability, more flexibility, and a lighter feel on your wrist. The Brig’s other features include Alarm mode, Future Tide Mode (next 20 years), Time Zone 1 and Time Zone 2 modes, 10 ATM/100 Meters Water Resistance, Unibody PU Construction for Additional Durability, Heavy-Duty Stainless Steel Caseback. |
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Vestal Men’s BRG001 Brig Tide and Train All Black Digital Polyurethane Surf Watch $140 The Brig by Jordy Smith is a digital tide and train watch that can track the tide at over 200 beaches worldwide for the next 20 years. It also offers a host of other high end features like a digital tide graph that features current tide height, quick access to Vestal’s own custom training mode with ‘Suffer and Recover’ interval timer, and Heat Mode with countdown timer. The watch strap is secured to your wrist with a new patent pending OKTOLOCK system. The OKTOGRIP raised pattern on the underside of the band means significantly less rubber contact against your skin providing greater breathability, more flexibility, and a lighter feel on your wrist. The Brig’s other features include Alarm mode, Future Tide Mode (next 20 years), Time Zone 1 and Time Zone 2 modes, 10 ATM/100 Meters Water Resistance, Unibody PU Construction for Additional Durability, Heavy-Duty Stainless Steel Caseback. |
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Alabama Crimson Tide Watch and Wallet Set $53.99 Alabama Crimson Tide Watch and Wallet Set Black |
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Nixon The 42-20 Tide Watch $450 Nixon The 42-20 Tide Watch: Monitor more than the time with Nixon’s The 42-20 Tide Watch. A custom three-hand Swiss Quartz face will keep you in check, while an easy-to-read tide sub dial keeps you on top of the changing tides. The 42-20 Tide Watch, so much more than a keeper of time. |
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Alabama Crimson Tide- University Of Pocket Watch $45.75 Alabama Crimson Tide- University Of Pocket Watch Alabama Crimson Tide- University Of Pocket Watch |
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Alabama Crimson Tide- University Of Carabiner Watch $24.04 Alabama Crimson Tide- University Of Carabiner Watch Alabama Crimson Tide- University Of Carabiner Watch |
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Del Mar Tide Watch $49.99 Del Mar Tide Watch . In addition to being an accurate, stylish timepiece this model provides detailed tidal information including a tide calculator and highest tide function. Water-resistant to 165′/50m. Features a long-life lithium battery, alarm/chime, dual time, countdown timer, 1/100 second stopwatch and Electro-luminescent backlight. Two-year limited warranty. Imported. |
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G-Shock G-7900A G Rescue Watch $120 G-Shock G-7900A G Rescue Watch 2011: Toughness and smarts are delivered in a whole new package with the G-Shock G-7900A G Rescue Watch. Designed and engineered for the rough and rugged, the G-7900A G Rescue features a Tide graph, moon data, world time among many tech features. |
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Nixon Lodown Tide Watch – White $125 Get the Lodown on when the perfect sets will come crashing in with this tide watch by Nixon! It features stored tide information from 200 international beaches for the next 15 years along with an alarm and loads of other features, so you’ll know whether dawn patrol is worth it wherever you roam. |
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Nixon The Outsider Tide Watch – Black $175 Forget fitting in â break away from the pack with this hot The Outsider digital tide watch by Nixon! It features stored tide information from 200 international beaches until the year 2020 along with an alarm and loads of other features, so you’ll know whether dawn patrol is worth it or not wherever you roam. |
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Freestyle Stealth Tide 3.0 Watch (Black) $110 No matter where you are, the Freestyle Tide 3.0 Stealth Watch is sure to let your know what the tide is near you. This watch is made with plastic, stainless steel, and polyurethane, is has the tide for seventy-five pre-programmed beaches around the globe, dual time zones, and waterproof up to 100 meters. |
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Freestyle Tide 3.0 Watch (Black) $85 The men’s Freestyle Tide 3.0 features a tide data for 75 beaches worldwide, for the next 15 years. The main display shows the present/future tide data, the date and time. Also there is a programmable beach capability with a 3-hour offset, dual time zones, an optional BIG time with a shark fin animation, a preset heat timer: 15, 20, 25, 30, and 35 minutes, and 2 alarms. This watch has stainless steel top plates, a durable dual injected polyurethane strap, a night vision backlight for the main display, and can go 100 meters in the water. |
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Nixon 42-20 Tide Watch – Black $425 You donât brag about it, but letâs be honest â youâre a pretty rad surfer. You deserve a watch that can not only keep up with your rockinâ style but aid you in finding the best swells as well. Exemplify the ultimate in performance and appearance with this 42-20 Tide watch by Nixon. Featuring a giant 2â diameter face with an easy-to-read tide sub dial, a rotating bezel with a countdown timer and a solid stainless steel band with a spring-release clasp, this timepiece is a sleek and powerful presentation of developed style. |
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Alabama Crimson Tide Triangle Side Bracelet Watch $24.95 You’ll never be late for class or game time when you sport your Tide pride with this eye-catching triangle side bracelet watch! |
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Nixon Lodown Silver-Black Tide Watch $125 Get the Lodown on when the perfect sets will come crashing in with this tide watch by Nixon! It features stored tide information from 200 international beaches for the next 15 years along with an alarm and loads of other features, so you’ll know whether dawn patrol is worth it or not wherever you roam. |
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Nixon The Lodown Green-Blue-Navy Tide Watch $125 Get the Lodown on when the perfect sets will come crashing in with this tide watch by Nixon! It features stored tide information from 200 international beaches until 2020 along with an alarm and loads of other features, so you’ll know whether dawn patrol is worth it wherever you roam. |
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Nixon The Small Lodown Pink Juniors Tide Watch $125 Get the Lodown on when the perfect sets will come crashing in with this tide watch by Nixon! It features stored tide information from 200 international beaches for the next 15 years along with an alarm and loads of other features, so you’ll know whether dawn patrol is worth it or not wherever you roam. |