3S Index - What Is 3S

The "Morzhanov Project" is engaged in the development of methods and tools for analyzing and investing in the Stock Market.

Our main goal is to make the investment portfolio of a private investor reliable and profitable.

Therefore, we have created а stock portfolio evaluation method called "3S Indexation", which allows, as to develop or reconstruct an investment portfolio (stock/ETF set), so to evaluate the stock market as a whole. Its simple graphical display is

Stock set Signature Index (3S Index).

This index is fundamentally different in its logic from existing market indices.

Its special feature is that the index is focused on the stock portfolio of a private investor. It takes into account the value and number of shares of each asset in the portfolio and is calculated in two variants that complement each other: 3S Index iS and 3S Index iM.

The method for calculating the 3S Index iS/iM has not yet been published.

3S Index iS/iM for What

The main purpose of the 3S Index iS/iM is to develop or reconstruct your investment portfolio (stock/ETF set).

In essence, a private investor analyzes and indexes his personal stock portfolio (stock/ETF set).

For this the Stock set Signature is created - External Trend and Internal Trends are determined. A private investor analyzes these results.

But the structure (composition) of most stock market indexes is similar a stock set. Thus, the 3S Index iS/iM can be used to index not only stock set, but stock market, for example, how this is done for indexing the US stock market (USSM). Based on the dynamics of the 3S Index iS/iM, one can assess whether the market is “at the top” or “at the bottom”.

All this allows for insights into stock market or stock portfolio prospects and has nothing to do with the concepts of “overbought”, “oversold” or "volatility" that you know.

Separately about volatility. The 3S Index iS/iM does not show market volatility directly. It is possible to evaluate volatility through ETF set "Volatility Hedged ETF".

The 3S Index iS/iM is а relative value and resembles an oscillator. This makes it easier to analyze.

3S Index iS/iM for Whom

The 3S Index iS/iM was created by a private investor for private investors and is developed to maximize returns on stock/ETF investments in the Stock Market.

3S Index iS/iM for Use

First. You can use 3S Index iS/iM in order to:

develop a stock portfolio (stock/ETF set) with an assessment of its prospects;
analyze of the current stock portfolio (stock/ETF set) with an assessment of its prospects;
modeling management/reconstruction (changes in composition/volume) of your current stock portfolio (stock/ETF set) with an assessment of the prospects for these changes.

Second. 3S Index iS/iM can be used to index the stock market as a whole, for example, the US Stock Market as noted above.

Third. 3S Index iS/iM is universal. It can be used to index different stock markets and be applied to different stock portfolios (stock/ETF set) in those markets.

Note: The 3S Index iS/iM cannot be applied, for example, to currency market directly. But it is possible to evaluate such markets through ETF sets: Currency, Bond or Volatility.

Important Notes

First. In the beginning you need an idea and a goal. An stock portfolio (stock/ETF set) can be compiled/reconstructed according to any your ideas and criteria. Then, 3S-indexation will show quality and help assess the prospects of your new or reconstructed portfolio.

Thus, the 3S Index iS/iM is a method and tool for analyzing and managing your stock portfolio.

Second. In case of the stock market indexation: 'incept date' = 'update date'.

When a data update occurs and new data is entered into the 3S Index iS/iM calculation or when the stock set components are revised, or both, the dynamics of the entire index is changing. This change is a reflection of the changing situation on the stock market and is important subject to analyze.

This is a significant property of the 3S Index iS/iM, and it can be used in various methods for analyzing both the stock market as a whole and the your investment portfolio.

Third. 3S Indexing of the stock market and 3S Indexing of the your investment portfolio (stock/ETF set) are done using the same method. Therefore, in order to obtain important information about the prospects of your stock portfolio, you must to compare the 3S Index iS/iM dynamics of your stock portfolio with the 3S Index iS/iM dynamics of the corresponding stock market.

The methods for such comparison are not described here and are discussed personally.

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