Daily Speculations

The Web Site of Victor Niederhoffer & Laurel Kenner

Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.



Write to us at: (address is not clickable)

Layers by Victor Niederhoffer and Dr. Alex Castaldo

The layers of the S&P 100 classified by price remind me of a forest with different layers. The canopy. An understory, and the brush vertically, and horizontal layers relating to their performance. Classifying them by first digit of their price: (thanks to Mr. Higgs)

Digit (#) Tickers
90's (3) gd, gs, utx
80's (3) fdx, mmm, ibm
70's (2) aig, leh
60's (5) bdk, ci, wy, slb, hig
50's (13) etr, amgn, wfc, jnj, pg, cl, wmt,
bud, ba, mwd, mer, mdt, axp
40's (16) pep, mo, het, all, csc, c, xom,
mrk, avp, ko, bac, dow, dd, g, gm, ip
30's (23) s, jpm, bhi, rok, vz, hca, hnz, hd, hon,
exc, bni, dell, ccu, rtn, via.b, aa, ge,
pfe, aep, tyc, bcc, bax, so
20's (18) ek, usb, hal, nsc, rsh, msft, mcd, cpb,
sbc, may, medi, bmy, nxtl, dis, sle, intc,
txn, ltd
10's (14) csco, ati, hpq, twx, toy, t, f, nsm, xrx,
wmb, emc, uis, orcl, aes
one digit (3) ep, dal, lu

The source data (source: Standard and Poors):

SymbolCompanySectorPrice 8/27
GDGeneral DynamicsIndustri98.39
UTXUnited TechnologiesIndustri93.41
GSGoldman Sachs GroupFinancia90.48
IBMInternational Bus. MachiInformat84.94
MMM3M CompanyIndustri81.48
FDXFedEx CorporationIndustri81.33
LEHLehman Bros.Financia74.51
AIGAmerican Int'l. GroupFinancia70.92
BDKBlack & Decker Corp.Consumer69.64
CICIGNA Corp.Health C66.3
WYWeyerhaeuser Corp.Material62.64
SLBSchlumberger Ltd.Energy62.27
HIGHartford Financial Svc.GFinancia61.33
ETREntergy Corp.Utilitie59.79
AMGNAmgenHealth C59.68
WFCWells FargoFinancia58.66
JNJJohnson & JohnsonHealth C57.71
PGProcter & GambleConsumer55.98
WMTWal-Mart StoresConsumer53.56
BABoeing CompanyIndustri51.99
MWDMorgan StanleyFinancia51.57
MERMerrill LynchFinancia51.46
MDTMedtronic Inc.Health C50.12
AXPAmerican ExpressFinancia50
PEPPepsiCo Inc.Consumer49.27
MOAltria Group, Inc.Consumer49.13
HETHarrah's EntertainmentConsumer47.78
ALLAllstate Corp.Financia47.69
CSCComputer Sciences Corp.Informat46.79
CCitigroup Inc.Financia46.72
XOMExxon Mobil Corp.Energy45.44
MRKMerck & Co.Health C45.15
AVPAvon ProductsConsumer44.75
KOCoca Cola Co.Consumer44.72
BACBank of America Corp.Financia44.51
DOWDow ChemicalMaterial42.69
DDDu Pont (E.I.)Material42.55
GGillette Co.Consumer42.15
GMGeneral MotorsConsumer41.75
IPInternational PaperMaterial41.15
SSears, Roebuck & Co.Consumer39.78
JPMJPMorgan Chase & Co.Financia39.72
BHIBaker HughesEnergy39.58
ROKRockwell Automation, IncIndustri39.26
VZVerizon CommunicationsTelecomm38.96
HCAHCA Inc.Health C38.3
HNZHeinz (H.J.)Consumer38.19
HDHome DepotConsumer36.59
HONHoneywell Int'l Inc.Industri36.46
EXCExelon Corp.Utilitie36.03
BNIBurlington Northern SantIndustri35.61
DELLDell Inc.Informat35.2
CCUClear Channel CommunicatConsumer35.17
RTNRaytheon Co. (New)Industri34.4
VIA.BViacom Inc.Consumer34.32
AAAlcoa IncMaterial32.85
GEGeneral ElectricIndustri32.77
PFEPfizer, Inc.Health C32.65
AEPAmerican Electric PowerUtilitie32.33
TYCTyco InternationalIndustri31.84
BCCBoise CascadeConsumer31.5
BAXBaxter International IncHealth C30.61
SOSouthern Co.Utilitie30.01
EKEastman KodakConsumer29.38
USBU.S. BancorpFinancia29.32
HALHalliburton Co.Energy28.95
NSCNorfolk Southern Corp.Industri27.92
RSHRadioShack CorpConsumer27.59
MSFTMicrosoft Corp.Informat27.46
MCDMcDonald's Corp.Consumer27.17
CPBCampbell SoupConsumer26.33
SBCSBC Communications Inc.Telecomm25.84
MAYMay Dept. StoresConsumer25.01
MEDIMedImmune Inc.Health C24.49
BMYBristol-Myers SquibbHealth C24.23
NXTLNextel CommunicationsTelecomm23.29
DISWalt Disney Co.Consumer22.66
SLESara Lee Corp.Consumer22.47
INTCIntel Corp.Informat22.03
TXNTexas InstrumentsInformat20.34
LTDLimited Brands, Inc.Consumer20.2
CSCOCisco SystemsInformat19.47
ATIAllegheny Technologies IMaterial18.75
TWXTime Warner Inc.Consumer16.71
TOYToys R Us, Inc.Consumer16.38
TAT&T Corp. (New)Telecomm14.78
FFord MotorConsumer14.12
NSMNational SemiconductorInformat13.94
XRXXerox Corp.Informat13.55
WMBWilliams Cos.Energy11.78
EMCEMC Corp.Informat10.75
UISUnisys Corp.Informat10.39
ORCLOracle Corp.Informat10.29
AESAES Corp.Utilitie10
EPEl Paso Corp.Energy7.91
DALDelta Air LinesIndustri4.07
LULucent TechnologiesInformat3.14

Kim Zussman Comments:

Could the distribution be explained by company's propensity to split when near or past triple digits (to interest retail investors) and S&P ejecting single digiters? Some were >100 at prior market highs. So the trees grow to about this height and not much more, which suggests currently growth remains. If they are all attracted to 100, it would follow (neglecting idiosyncratic volatility) that more of the current highest should make it before the lowest as a result of tracking the market. Does the round number act as attractor, the effect of which falls off with distance (from 100)? If so there should be a countable pull on the top (10?) which is greater than the pull on other deciles.