X-Trader.net - El Foro de los Traders

Citi trades below $1 ..this is first time since the Dow was created in 1896 that a stock has traded below $1. As its a price weighted index Dow used to have an un-written rule that any stock that traded below $10 was kicked out of the index. Today Citi (98cents), GM (1.85), BoA (3.23), Alcoa (5.58 ) and GE (6.66) all trade below $10 Its clear that the index is politically controlled ie its not a good idea for Citi or BoA which the government has bailed-out to disappear from the "benchmark" stock index. But as its a price weighted index it means that the lower these stocks fall the less effect it has on the overall index. Therefore S&P is the index to watch...