Non “Industrial” Representation:
The Dow Jones “Industrial” Average is not the same make up of industrial names as it was in years past, but it is probably the most covered benchmark today. Therefore it pays to keep a close eye on it, as its gains or losses could play with the psychology of many market participants. Over time the additions of technology heavyweights like AAPL MSFT, and to a lesser degree CSCO and INTC, has changed the make up of the index. Keep in mind it is a PRICE weighted index, so AAPL quickly closing in on the very round 500 number, has a big impact. The next closest competitor in PRICE is HD trading near 283. But traditional industrial spaces like the truckers and rails are speaking to a stronger economy going forward. The IYT is bull flagging, like just about everything else, and this week was near the UNCH mark, after the prior 3 weeks rose by a combined 12.2%. Other smaller sub groups like the airlines and defense have been weighing on the sector with the JETS and ITA off by 49 and 32% respectively from their most recent 52 week highs.