Indexes lying

Investment Analysis Clubs Saul’s Investing Discussions
#1

http://stockcharts.com/freecharts/candleglance.html?$INDU,$C…

The indexes today are not off too much, yet when I look at the charts of a lot of my stocks there are some much bigger declines. I think some of the big leaders are artificially holding up the indexes and tricking us. That is, Google, Apple, Netflix, etc are holding up the Naz while all the smaller stocks are starting to diver. Divergence is a sign ;-(

I have not updated these correctly, but will at the end of the month… and these are not fairing as badly as some of my other types of holdings. (Why did I only seel 25% of EMC on the takeover announcement!)
http://stockcharts.com/freecharts/candleglance.html?SWKS,SKX…

http://stockcharts.com/freecharts/candleglance.html?INFN,SED…

4 Likes
#2

The indexes today are not off too much, yet when I look at the charts of a lot of my stocks there are some much bigger declines. I think some of the big leaders are artificially holding up the indexes and tricking us. That is, Google, Apple, Netflix, etc are holding up the Naz while all the smaller stocks are starting to diver. Divergence is a sign ;-( - Puddinhead42

That was an astute observation. More often than not, the cap-weighted indexes offer misleading observations of market behavior. There have been many, MANY times in the past when individual company share prices have distorted the Market indices. That’s just a fact of life.