Whew! Now the DOW can resume its downward plunge

[Chomsky]

GM, Citigroup removed from Dow Jones industrial index

http://news.yahoo.com/s/ap/20090601/ap_on_bi_ge/us_dow_components


There wasn't much downside left in either stock, was there?

[LargoWinch]

Re: Whew! Now the DOW can resume its downward plunge

GM, Citigroup removed from Dow Jones industrial index

http://news.yahoo.com/s/ap/20090601/ap_on_bi_ge/us_dow_components


There wasn't much downside left in either stock, was there?

Q: What is the only original stock left in the DOW?
A: GE

Anyway, that is my main concern with the real Dow theory going back lower.

Should it not be the "real S&P500" theory?

[charliebrown]

Re: Whew! Now the DOW can resume its downward plunge

Agreed, this has happened before too. Just last year didn't kraft replace honeywell? The index can be adjusted for the share price, but as i see it, it's not the same index anymore.

GM and Cisco are not going track together. So after the reset, how does the index track with the historical index? And were not talking about the death of "buggy whips" here either, cars are still being made, but now the DOW no longer has "cars" in it. I guess there no longer important to the economy

I don't know how cisco runs its business but I would speculate that it hires off-shore engineers, manufacturing and help desk. Only managment, sales and field support are in the U.S. With so much of cisco's operations overseas, how can it be a "bell-weather" for the u.s. ecomony as the dow is supposed to be? In fact ... maybe this is why the DOW is screaming up, and J6P is barely scraping by?