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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: HairBall who wrote (12965)5/5/1999 3:41:00 PM
From: Les H  Respond to of 99985
 
Thanks to a common divisor, a stock such as Merck that falls after a stock split tends to impact the Dow less. Higher priced stocks that are added to replace low-priced dogs, such as the case with HWP and JNJ replacing BS and Z, tend to add the additional bias of higher priced stocks moving more in points than small caps. Easier for HWP to move from 50 to 70 than for BS to move from 8 to 28, yet both result in the same Dow change.