S&P/DOW diff

Discussion in 'Trading' started by retire45, Mar 10, 2008.

  1. SP500 right at 1270 Jan Low.. Dow has a good 100 points to Jan Lows.. How does this get resolved? SP's break a bit or Dow doesn't get to Jan Lows.. I have a feeling it's the first scenario... Think I'll split the Dow and cover shorts Dow 11660 even though the Dow's a rogue index..
  2. SPX and DOW have approx a 94-95% correlation. I wouldn't necessarily bet that it does get resolved.
  3. The dow has been outperforming the Spooz for quite awhile mainly because the S%P is full of crappy consumer and financial stocks.
  4. Thanks.. I remember in the dot com days it was said Naz was typically 1/5 of the Dow.. still close to that..
  5. Anybody that watches the markets will tell you that IBM has been in an uptrend since early January ( low of 97.04 ) and is currently trading at $114.00

    It's not just about the weakness in the financial sector of the S&P.
  6. Wow.. Hadn't seen an IBM Chart in years..
  7. Long SPY/Short DIA lost ~10% over the last 2 years (not adjusted for dividends).
  8. This is now resolved.. The SP Levels mattered more to the powers that be.. Fried in my shorts.. Waiting for the DOW 100 points turned out to be REALLY expensive... OUCH! At least use some vaseline!