Important Market TOP Forming? The charts have turned VERY ugly even as the news remains relatively benign. It’s tempting to blame the recent market volatility on the ups and downs of the prospects for a US/China trade deal. The timing of the sudden market plunge points the finger squarely at Trade Tensions. “Trade Tensions […]
The Dow Jones Is Price Weighted, Giving Certain Components Disproportionate Influence. The Dow Jones Industrial Average (Dow) is the oldest and most prestigious stock index. It’s methodology of calculation is also one of the strangest. While nearly all indexes are market capitalization weighted, the Dow is “Price” weighted. Price weighting means that a $30 component […]