New Dow Multiplier Coming soon

[william the wie]

This means that Dow index funds are going to generate a huge and hopefully shortlived, boom and bust. The same thing happens with the S&P and Russell indices. The big difference is that the Dow dogs, which are computed in an unbounded number of ways may also be affected. So, expect some really strange moves over the next two weeks.

 

[USApatriotz]

Can you please expound on what a Dow multiplier is?

 

[Mac1958]

For those who believe this theory, just use trailing stops on new buys.

 

[william the wie]

Can you please expound on what a Dow multiplier is?

Originally it was a divisor to keep track of stock splits. Over the past 100 or so years the divisor has sunk to well below one. 0.144... if memory serves is the first three digits of the current divisor. Since it makes the Dow bigger normally it is called a multiplier.

 

[Toddsterpatriot]

Can you please expound on what a Dow multiplier is?

Add up the 30 prices of the Dow stocks. Divide by 0.14523396877348

The result is the current DJIA.

 

[USApatriotz]

Can you please expound on what a Dow multiplier is?

Originally it was a divisor to keep track of stock splits. Over the past 100 or so years the divisor has sunk to well below one. 0.144... if memory serves is the first three digits of the current divisor. Since it makes the Dow bigger normally it is called a multiplier.

What does that correlate to?? .144 of Dow stocks split in a given year??

 

[Toddsterpatriot]

Can you please expound on what a Dow multiplier is?

Originally it was a divisor to keep track of stock splits. Over the past 100 or so years the divisor has sunk to well below one. 0.144... if memory serves is the first three digits of the current divisor. Since it makes the Dow bigger normally it is called a multiplier.

What does that correlate to?? .144 of Dow stocks split in a given year??

When a stock splits, they have to adjust the multiplier (divisor).
They add up the new 30 prices. The new divisor has to give the same result as the old divisor with the old, pre-split price.