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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Spots who wrote (13009)	1/10/1998 11:10:00 PM
From: James F. Hopkins	Respond to of 94695

Spots; It wouldn't do you any good to argue with me any way<grin> Any how I don't argue very good, see it as senceless. Back to the way the DOW is "not weighted" percetage wise if you had 1 stock of eack issue the change would match the dow index change in percent. As you said it would take a higher perctage move on the lower priced stock to move the index the same, ( yet dollar for dollar they move it the same ) but that's simple as if the lower one moves the same Dollars..it's bound to move of itself more percentage just because it is cheaper. ------------------ Here's a rub..JP Morgan at 105 would by your terms have more weight than say GE at 72..does it make sence for a stock with only 18.78B cap to have more power over the DOW INDEX than one with 237.1B in cap. ------------------------- Take the top 10 DOW stocks average..they have over 2 times the market cap, than the other 20 put together.. If you see the MEGA CAPS start down..then the rest will soon follow. The index can and may hold up for a while...as the MEGA CAPS creep down..the little ones making enough gains from the last run to sort of float the index..butthen when they turn to follow the MEGA caps..the index starts a fast adjustment, and the couch potatoes rush in too.. ----------------- by the same token that the dollar move on the cheaper stock was more of a percetage gain for it..that holds true when it falls too. ---------------------------- GE, XON, KO, MRK, MO; average them..if they are falling or gaining as an average the rest will soon follow. You could add PG, T IBM, JNJ, and WMT to get a better average..the rest are like the tail on a dog..they may cause the index to go up..or down when the real money is going the other way..that's the DOW in a nut shell. Regards and good luck to ya. Jim