Industry distortion due to 1 high priced thinly traded stock
This seems cuckoo: On 9/28/2015 the market was down, but the REIT (Mortgage) Industry was up solely because of 1 stock, DVLN ($5,480/share) had a trade volume of 3 shares, up $180! 95% of the REIT (Mortgage) stocks were down, yet astonishingly the entire Industry was up because DVLN's price change ($ Change) was up $180 and it exceeded the total price changes of all 59 stocks in this Industry. This is nuts! Why should 1 stock, thinly traded & over priced, have so much influence over an entire industry? It is a distortion of the Industry. Is there a better way for VV to accurately display what an Industry is doing? How about assigning a weight to $ Change by multiplying it by Volume?
2
votes
Richard Hadlock
shared this idea
