Dow Jones Industrial Average: What a Quaint Old Index! Should It Be Retired?

SYNOPSIS

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As you watch or read about the general markets these days, you might conclude that “Mr. Market” is bullish. After all, the major indexes are bumping against or nudging through the previous day’s record highs. But then you have to realize that there are a half-dozen mega-cap tech stocks moving the market cap weighted indexes higher. Still, as we’ll show you today, even the broader markets are doing fine. We’re not really at “Bat Shit Crazy” yet!

Last week… Another up week for our two main benchmarks. We’ve returned to a balanced zero-centred chart style for this one. If you keep past issues around, this will make visual comparisons easier. One-week moves rarely exceed 5%. (If that happens we’ll do a temporary extension.)
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PTP… This scale for this chart has to stay floating, since the moves for the PTP can be quite extreme. The PTP APAR has been as high as 1380% over the past 500 weeks and as low as -292%. Our median is 125%. Negative readings are extremely rare, since normally we sell everything before that happens. Over this past week we’ve lost about 100 points on the PTP, but our benchmarks rose. +1% for TSX and +20% for S&P.

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PTA Perspective…Dow Jones Industrial Average: What a Quaint Old Index! Should It Be Retired?
The Dow Jones Industrial Average really shouldn’t exist anymore, but there it is, every day, often taken more seriously than the S&P 500 by the media. We have a look at this crazy phenomenon in this week’s edition of TrendWatch Weekly, especially since there have been some recent adjustments to the DJIA’s 30-stock component list.