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The DJI 30 is a fraud?


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#1 pdx5

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Posted 17 May 2007 - 05:13 PM

Yesterday I came across this article by one Mr. Newman on the website SafeHaven. I did not get a chance to cut and paste it since I was rushed for time, so I sat down to do it now, but mysteriously his article is pulled from the index :angry: I do not recall any such yanking of articles on SafeHaven. Must have hit a raw nerve somewhere!!
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#2 TTHQ Staff

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Posted 17 May 2007 - 06:14 PM

You could always sign up for a free trial and ask him to send you a copy of the article. At least I assume you are referring to Mr. Alan Newman.......

Alan Newman Contact Info

#3 da_cheif

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Posted 17 May 2007 - 08:54 PM

Yesterday I came across this article by one Mr. Newman on the website SafeHaven.
I did not get a chance to cut and paste it since I was rushed for time, so I sat down
to do it now, but mysteriously his article is pulled from the index :angry:

I do not recall any such yanking of articles on SafeHaven. Must have hit a raw nerve
somewhere!!

of course the dow 30 is a fraud...never has so much been done to so many by so few.........the mupt uses the dow to keep most out of the market one way or another........if the dow were to have kept pace with the broader measures of market activity we would have the dow at 30 to 40 k now....intstead of later.... :wacko:

#4 Vector

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Posted 17 May 2007 - 09:12 PM

industrials & materials I was forced today to sell half my position in TNH b/c it was lopsiding my asset allocation so much after rising 5x since I bought it in the IRAs... Life sucks being being a bull and long... in a stealth bull market :lol: Oh well, back to my RE investing and getting filthy stinking rich flipping foreclosures catch ya later...in a few more weeks or months... or next time I have some breathing time...hope ur all doing well.

Edited by Vector, 17 May 2007 - 09:18 PM.


#5 pdx5

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Posted 17 May 2007 - 09:35 PM

You could always sign up for a free trial and ask him to send you a copy of the article. At least I assume you are referring to Mr. Alan Newman.......

Alan Newman Contact Info


Thanks for that info, TTHQ Staff!


One of Alan Newman's main point is that poor performing stocks are constanty culled in
favor of better performers. He listed a dozen stocks which if still in the DJI 30 would
result in a much lower DOW. Another point he made was that since DJI is price weighted,
it skews the average with an upward bias. For example if you owned equal dollar amounts
in IBM & Intel, and if IBM advanced 10% and Intel declined 10%, your portfolio would show
no change. But the same change would cause the DJI to skyrocket upwards since IBM has a
much higher weighting than INtel in DJI.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#6 da_cheif

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Posted 17 May 2007 - 09:39 PM

You could always sign up for a free trial and ask him to send you a copy of the article. At least I assume you are referring to Mr. Alan Newman.......

Alan Newman Contact Info


Thanks for that info, TTHQ Staff!




One of Alan Newman's main point is that poor performing stocks are constanty culled in
favor of better performers. He listed a dozen stocks which if still in the DJI 30 would
result in a much lower DOW. Another point he made was that since DJI is price weighted,
it skews the average with an upward bias. For example if you owned equal dollar amounts
in IBM & Intel, and if IBM advanced 10% and Intel declined 10%, your portfolio would show
no change. But the same change would cause the DJI to skyrocket upwards since IBM has a
much higher weighting than INtel in DJI.

poor performing comes before great performing.....neuman never figured that one out.....even professor hussman continues to fight the tape

May 14, 2007
An Optimistic Route to a Poor Market Outlook

John P. Hussman, Ph.D.
All rights reserved and actively enforced.
Reprint Policy

With the stock market currently reflecting a relatively rare set of overvalued, overbought and overbullish conditions, the potential for abrupt market weakness remains much higher than is typically the case. The Strategic Growth Fund has the ability to hedge the full value of its stock holdings using long-put / short-call index option positions, where no more than one of those options is “in-the-money” when the position is initiated. This is the stance currently held by the Fund.

Edited by da_cheif, 17 May 2007 - 09:40 PM.


#7 selecto

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Posted 17 May 2007 - 09:51 PM

Remember everyone, its shiney side out.

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#8 redfoliage2

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Posted 18 May 2007 - 06:50 AM

You could always sign up for a free trial and ask him to send you a copy of the article. At least I assume you are referring to Mr. Alan Newman.......

Alan Newman Contact Info


Thanks for that info, TTHQ Staff!




One of Alan Newman's main point is that poor performing stocks are constanty culled in
favor of better performers. He listed a dozen stocks which if still in the DJI 30 would
result in a much lower DOW. Another point he made was that since DJI is price weighted,
it skews the average with an upward bias. For example if you owned equal dollar amounts
in IBM & Intel, and if IBM advanced 10% and Intel declined 10%, your portfolio would show
no change. But the same change would cause the DJI to skyrocket upwards since IBM has a
much higher weighting than INtel in DJI.

poor performing comes before great performing.....neuman never figured that one out.....even professor hussman continues to fight the tape

May 14, 2007
An Optimistic Route to a Poor Market Outlook

John P. Hussman, Ph.D.
All rights reserved and actively enforced.
Reprint Policy

With the stock market currently reflecting a relatively rare set of overvalued, overbought and overbullish conditions, the potential for abrupt market weakness remains much higher than is typically the case. The Strategic Growth Fund has the ability to hedge the full value of its stock holdings using long-put / short-call index option positions, where no more than one of those options is “in-the-money” when the position is initiated. This is the stance currently held by the Fund.

Is this the plan for the summer vacation? :lol: