Futures are up modestly this morning on the Dow reconfiguration chicanery and stock split mumbo jumbo. The Dow reconfiguration is, like all that have come before it, designed to do one thing: deliberately boost the current and future value of the Dow by adding winners and ditching losers.
That’s why the Dow is a meaningless measure of market performance and is, at best, a signal to the wary of the games being played to portray economic health. Perfect example: the Dow’s sharp reversal on March 23 after it had fallen to its 2016 election lows.
The stock split mumbo jumbo should be ignored altogether. Exchanging a $5 bill for 5 singles produces no net increase in value, but don’t tell the Robin Hood traders. They’re convinced that value of AAPL and TSLA has been enhanced via the maneuver.
The thing people should be watching today is VIX which, though its 10/20 cross failed last Friday, is back for another bite of the poisoned apple.
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