Dow -8 Points; Dow Ex-IBM +72 Points

Tyler Durden's picture

With bellwhether, large- and small-cap firms missing earnings, missing revenues, and lowering outlooks, it is no surprise that the market is near record highs once again - oh wait... IBM anchor-like on an otherwise glorious day in the stock markets...


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Insideher Trading's picture

I heard all the pro traders watch the DOW.

I have to add to this to my watch list.

Silver Bug's picture

Don't worry if the markets go down, they will just print more money.

vast-dom's picture

yeah well maybe the pros uh...there's glut of doomsday articles on MarketWatch of late...maybe it's time to long this pig one more time before it's slaughtered. 

Unprepared's picture

They should rename it iBM and watch the DOW soar. /sarc

firstdivision's picture

Bond ETF's are a steal today

Stock Tips Investment's picture

The risk now is that other major companies (within DJ-30) also announced poor results. Or announce negative outlook. This can lead to a correction in a larger number of stocks. And against that, little could do QE3. We must be very careful.

The Axe's picture

Is this the break higher....over 1460???   Or the top of the range?    

PUD's picture

Disney to start serving booze. BTFD

EuroInhabitant's picture

GEAB N°68 is available!

"- by the end of November 2012, the United States and China are each entering a double phase of historical domestic socio-political tensions before having to come to terms with the end of the period of “peaceful economic and commercial coexistence” of these last decades "

US dollar collapse predicted bij LEAP. November 2012.

fonzannoon's picture

The dow should kick IBM out today and just put them back when they have a better day.

Yen Cross's picture

Check out this ponzi rampfest chart! I rivals the DOW!

Conman's picture

Honey badger market dont care about IBM.

Dr. Engali's picture

Maybe they should pull out BAC and replace it with Apple. That should get them to the number they want.

Agent P's picture

Price weighting is a bitch.  I remember all the talking heads calling for AAPL to be added to the DOW when the stock climbed over 700...imagine the shit storm that would have caused on the way back to 630.

Doubleguns's picture

Big long red hangy down pecker... not IBM.

QE49er's picture

Frankenstein economies like the one we have never have a chance of becoming normal again, you have to destroy it first in order to step in the right direction.

max2205's picture

Bond slaughter is putting upward presure on the SPY side

FatAmerican's picture

Gold/realestate=1980 Bitchez!!!
Buy buy buy!!!

gjp's picture

Didn't take long for Benny's betaboys to erase just about all of last week's damage.  The fleecing will continue until morale improves.

HaroldWang's picture

IBM money rotating into safer stocks like AMZN with 300 p/e.

Palladin's picture

To calculate how changes in individual stocks will change the Dow, multiply the point change of the stock by 7.5.

The notion that the Dow is a "price weighted" average is just Kool Aid served up by Wall Street. An average is @sum divided by @count.

If you add up all of the prices in the Dow it will come to 1,750-1,800 and if you divide by the 30 stocks in the Dow you get a real average of 60, not 13,500 as reported by the MSM and Wall Street.

What accounts for the difference? Well the Dow isn't an average at all. It's a gimmick that Wall Street came up with to give some sort of credence to the hussle they try to sell every day.

The actual calulation is done by adding up the prices of all of the stocks in the Dow and the dividing by the Magic Divisor  that the people over at Dow Jones came up with.

Currently it is 0.130216081 and the total of all of the stocks in the Dow today 10/17 is 1762.91 and when you divide it by the magic divisor, you get 13,339.12 which is what you will see reported as the Dow Jones Industrial Average.

So when they say the Dow was down 55 points it really tells you nothing. If IBM went down 10 points the Dow would go down 75 points. But if Alcoa went to zero then the Dow would have gone down 68 points.

Both are about the same point movenmet in the Dow, but the move in IBM represents a 5% loss, while the move in Alcoa represents a 100% loss.

Average indeed.

Keep on drinking that Kool Aid.


SilverMoneyBags's picture

Nominal highs, not REAL highs.

NEOSERF's picture

BTFID Bitchez!

nastaking's picture

The original Guophone G9300 Reviews, an Android phone that docked into a tablet shell, was certainly an interesting idea.