Dow Jones Index calculation flawed

[Directional]

There is a very interesting article here about why the calculation dealing with Dow Index weighting and stock splits dating back to the 1920's is fundamentally flawed. Very interesting - the Dow as is, is incorrectly priced based on the value of the underlying component stocks.

must read for Dow traders IMO.

http://www.traderdaily.com/column4/3469.html

 

[Buy The Dips]

I do agree with the Andrews analysis they provide...

One small drop remaining to Dow 10,700-11,000 before new run to Dow 18,000 +

Dow 13,300 is only the median line and MINIMUM projection

 

[dpfuller]

Thanks, interesting read, 13 stocks account for 58% of the index!