This chart comparison displays the S&P index with AMAZON (left) and without (right). The sole purpose is to highlight the big impact that AMZ has during the recent weekly rally after indices made a bottom.
As you see with AMAZON, S&P has been rising continuously since the March 23 bottom while without the weight of the pandemic-proof stock (since its on-line nature is favored by the lockdown) it is currently exactly on the March 23.
Food for thought on how bad the situation is on traditional companies. What do you think?
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Comment
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For those who missed the essence of this quick comparison and attempt to point out the obvious:
The point of this is to plot the candle sequence with and without AMZN. Of course the chart on the right doesn't represent the numerical value of S&P but succeeds in plotting the divergence that AMZN had in the recent days. That is all. Unfortunately TradingView doesn't provide the actual tool to subtract a stock out of the index. This is the best representation we can get to display AMZN's irregular rally this month.
Trolling and toilet-paper i.q flashes can be done on other social media or with family if you have nothing better to do while quarantined. This platform is not the place for that.
Unfolloooooow, this math fail is too painful to bear
TradingShot
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@bazkie, Some people need to refresh their graduate years (or start if they have none) with terms called "relative change". This is the point of this comparison. Of course the right hand chart doesn't represent SPX excluding AMZN numerically, there is no tool for that on TradingView. But it does represent RELATIVE CHANGE. And this is why the two charts have DIVERGED IN APRIL when the lockdowns took place while the trend has been ALMOST IDENTICAL in the previous months.
bazkie
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@TradingShot, sorry for my somewhat rude reaction.
'Relative change' means you work with the percentual difference between two things that use the same unit type. Amazon stock price and S&P Index price use different scales; you can't just subtract their absolute values and get a meaningful result.
You could make a graph with the % change of the S&P minus the % change of Amazon though, which would be a graph hovering around 0, above 0 would mean S&P would do relatively better than Amazon at that time, below 0 would mean Amazon would do better. That would make more sense.
@bazkie, exactly, this guy either has no idea how maths works or how market caps work and is trying to insult people calling him out. Theire is nothing "relative" about the chart he posted.
gilles2011
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I think you have to type SPX-AMZN*0.0424 to get the chart you expect to get. Because AMZN has around 4.24% weight in the index.