If you want to witness a pure psychological asset war, look no further than the 30-stock Dow Jones Industrial Average ($DOWI) and its primary tracking vehicle, the SPDR Dow Jones Industrial Average ETF Trust (DIA). As we advance through this year, the oldest stock index in the world is suffering from a severe case of split personality.
On any given day, you can look at the tape and see a set of stocks flashing bright green, looking technically sound and ready to break out, while the other half look absolutely atrocious, bleeding capital and carving out multi-month lows. I am heartened by any sign that the market is starting to distinguish between stocks, as high correlation has been a theme of my views here for a while.
