Why the Dow is a Bad Market Indicator

We opened positive on generally good corporate earnings, positive economic data in Europe (German sentiment numbers better than expected), and opening above the psychologically important 1200 level for the S&P 500.

Even thought the Dow is relatively flat, there are THREE stocks advancing for every ONE declining — this is why the Dow is not a good indicator for the overall market.

Volume is again trending toward the HEAVY side; we will likely again do over 6 billion shares on the consolidated NYSE tape. Prior to the middle of last week we were routinely doing 4 to 5 billion shares.

In Europe, the euro is weak AGAIN today and has gotten no traction, despite a supposed deal for Greece. Greek bonds continue to widen: 7.86 percent on the 10 year now. No one wants Greek bonds.

Positive earnings news from:

- retailers ,

- industrials (Eaton , Illinois Tool Works ),

- airlines (Delta )

- and HMOs (United Health ).

Mixed report from IBM .

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