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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Wed, 10/17/2012 - 12:27 | 2898234 Insideher Trading
Insideher Trading's picture

I heard all the pro traders watch the DOW.

I have to add to this to my watch list.

Wed, 10/17/2012 - 12:29 | 2898244 Silver Bug
Silver Bug's picture

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

Wed, 10/17/2012 - 12:30 | 2898247 vast-dom
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. 

Wed, 10/17/2012 - 12:34 | 2898264 Unprepared
Unprepared's picture

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

Wed, 10/17/2012 - 12:30 | 2898237 firstdivision
firstdivision's picture

Bond ETF's are a steal today

Wed, 10/17/2012 - 12:37 | 2898272 Stock Tips Inve...
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.

Wed, 10/17/2012 - 12:28 | 2898240 The Axe
The Axe's picture

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

Wed, 10/17/2012 - 12:29 | 2898248 resurger
resurger's picture


Wed, 10/17/2012 - 12:32 | 2898259 PUD
PUD's picture

Disney to start serving booze. BTFD

Wed, 10/17/2012 - 12:35 | 2898265 EuroInhabitant
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.

Wed, 10/17/2012 - 12:34 | 2898266 fonzannoon
fonzannoon's picture

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

Wed, 10/17/2012 - 12:36 | 2898269 Yen Cross
Yen Cross's picture

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

Wed, 10/17/2012 - 12:36 | 2898271 Conman
Conman's picture

Honey badger market dont care about IBM.

Wed, 10/17/2012 - 12:44 | 2898274 Dr. Engali
Dr. Engali's picture

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

Wed, 10/17/2012 - 12:40 | 2898280 Agent P
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.

Wed, 10/17/2012 - 12:40 | 2898281 Doubleguns
Doubleguns's picture

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

Wed, 10/17/2012 - 12:50 | 2898310 QE49er
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.

Wed, 10/17/2012 - 12:56 | 2898326 max2205
max2205's picture

Bond slaughter is putting upward presure on the SPY side

Wed, 10/17/2012 - 13:00 | 2898347 FatAmerican
FatAmerican's picture

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

Wed, 10/17/2012 - 13:07 | 2898369 gjp
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.

Wed, 10/17/2012 - 13:09 | 2898380 HaroldWang
HaroldWang's picture

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

Wed, 10/17/2012 - 13:21 | 2898411 Palladin
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.


Wed, 10/17/2012 - 14:56 | 2898679 hustler etiquette
hustler etiquette's picture

Thank you.

Wed, 10/17/2012 - 13:39 | 2898453 SilverMoneyBags
SilverMoneyBags's picture

Nominal highs, not REAL highs.

Wed, 10/17/2012 - 14:43 | 2898642 NEOSERF
NEOSERF's picture

BTFID Bitchez!

Wed, 10/17/2012 - 22:21 | 2899916 nastaking
nastaking's picture

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

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