Several mistakes

1. Dow is a price weighted index. The two stocks having the biggest impact on Dow are IBM and MMM.

2. Just because Nasdaq stocks make up a small percentage of S&P weightings, it doesn't they are not correlated. Correlation is computed using their returns and variance over a period. Look up in any corporate finance book for details.

3. Big market trends are not results of manipulations, but always reflect market participants's perception of fundamentals. Big MMs (Mutual Funds and Pension Funds) accumulate mostly for fundamental reasons.

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回复:Several mistakes -131105- 给 131105 发送悄悄话 (2462 bytes) () 11/24/2005 postreply 22:52:51

Thanks both 131105 and _nobody, your are both HH -6783- 给 6783 发送悄悄话 (0 bytes) () 11/25/2005 postreply 03:48:38

Can't agree more on MMs manipulate indice. -6783- 给 6783 发送悄悄话 (436 bytes) () 11/25/2005 postreply 04:02:11

回复:回复:Several mistakes -__nobody- 给 __nobody 发送悄悄话 (541 bytes) () 11/25/2005 postreply 07:33:41

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