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Here we go again. The split in MRK will jump the volatility in both the
Dow and the S&P. When I first started trading a 1 point move in a Dow
stock was less then 1/3 point move in the Dow. The splits are good for
the investor and for reduction in stock prices so that they can be
purchased by most individuals. It also keeps increasing the volatility
of the indexes. The Dow, S&P, OEX and any other index in which that
stock is included. The correction to risk comes in reducing the value
of a point in the S&P future from $500 to $250. Making the e-mini a tool
for the undercapitalized to participate in the cleaning of America.
Split the value of the OEX. What is next? It appears that the bear
wants to show its head and save the companies some time, effort and
money by not having to reduce their stock price through a split. I
haven't gotten an all out sell signal, but things have looked very ugly
for a couple of weeks now. As I have stated before, they will wait till
everyone is in the pool before they drain it. Good trading, Ira
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