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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: SwampDogg who wrote (44713)	11/7/1999 7:46:00 PM
From: Zardoz	Read Replies (2) \| Respond to of 116958

OT: It was just a pretty basic piece of information. I would hope that a trader that was handling my money would know that the DOW is an average in which every dollar of every stock gets the same weighting. This is irrelevant to the discussion. And you should've known that. I am discussing the Multiplier. Ever increase or decrease in a DOW 30 stock has a multiplication factor. So a 9 pt drop in say MSFT can result in a 44.04 pt drop in the Dow 30. I reference this: #reply-11829492 So in effectively the MSFT multiplier is: 4.8933 In deed, that was what I had been looking for. So when you once again look at your posts, you'd see that I was looking for something that I had missed in the news releases. And YES, it's important to know. And if you read these post by others you may determine why for your self. techstocks.com I don't think that it matters if you do not trade the DOW. But knowing a divisor/multiplier may not be important to you, but is to me. Many look at the XAU, and few here even know the weightings. So when it climbs and falls they are left to making... "A superficial reading" {quote of DoubleD's}. But if you do a component look at each unit, you can gain insight as to what the over all trend line may be. And in deed, you can gain both a long and short trend based on the TA merits of each individual equities. And in a non-similarity index like the DOW 30, which is NOT a geometric index, but an Average. You can gain information from the partial derivatives of such averages. To neglect one component of a market place, which is in fact greater then MANY of the world's countries GDP, is to neglect a driving force of the world economy. It is a basis for a thorough knowledge of the world capital markets. Yes, and maybe now you understand the importance of the Dow multiplier? Hutch PS: Now back on topic. Try running a partial derivative on the XAU. And you'd see that 2 stocks are holding the index down. Maybe it's due to rumours of takeovers? Or maybe it's something else. But "IF" we assume the POG is constant, then the XAU should pop. SO maybe the larger componets are correct, and speculation is in the XAU sub components and the POG? After all the larger units of XAU are the larger hedgers. And if the LARGER rumour is true, then maybe the XAU is going to after look harder for a new addition.