Trader Mike

[begin soapbox]
All the hype talk about the Dow being close to a new high has been driving me nuts. It always annoys me when people refer to the Dow as “the market”. Just yesterday I heard a couple of people on CNBC look at the indices and say that “the market” was up. At the time the S&P 500 and Nasdaq were in the red but the Dow was up by a few points. I guess some people see what they want to see.

As you may have noticed I usually don’t mention the Dow. There are a couple of reasons for that:

The Dow is only 30 stocks. That’s a tiny sample to …

I saw this article in the January issue of Active Trader Magazine: “Trading a different S&P 500: The RSP vs. the SPY“. The RSP ETF contains the same 500 stocks that make up the S&P 500 but they are equally weighted as opposed to the S&P’s capitalization weighting. The interesting part is that the RSP has been outperforming the S&P 500. Here’s a quote from another article about RSP:

Most investors would agree that just because a company is bigger doesn’t mean that it is a better investment. Let’s look at the most well-known index, the S&P 500, and its well-known ETF, the SPDR. Many investors think that investing in the …