WTF Chart of the Day: Dow Component Changes On Sep 20, 2013

By Lawrence

Dow is going to have another major shake up on September 20, 2013. Since component changes is such a rare event, its impact on the market is profound. Here are the charts of Dow over the last 4 component changes.


September 24, 2012. Down 1100 points.



June 8, 2009. Down 700 points.



September 22, 2008. Down 3600 points.



February 19, 2008. Down 800 points.



As you can see, the short term impact on Dow right after component changes can be quite bearish.

Do you think we will have an exception this time?


  • smilingsynic September 17, 2013 at 8:43 pm

    That long term BA target was hit during the last week.

  • Lawrence Chan September 18, 2013 at 9:23 am

    Many breadth readings are very overbought. A pullback is due.

  • geosing September 30, 2013 at 7:07 am

    A great example of “history repeats itself” and “there is nothing new under the sun”. 🙂
    The Dow danced to same tune again. Excellent study and accurate forecast! It also appears that the index bounces back after the drop – retracing at least 50%. Is there a 1-2-3 buy ahead, once the flush is complete?

    • Lawrence Chan September 30, 2013 at 9:22 am

      The 2 most recent ones are followed by QE renewal announcements hence S&P took off.

      This time they said it is a wind down …

  • geosing September 30, 2013 at 7:09 am

    May be the Government Shutdown drama will help the sub 15K tag. Well orchestrated. How do they plan these things?

    • Lawrence Chan September 30, 2013 at 9:23 am

      Stupidity at crowd level (“a congress of baboons”) can be amazing at times =)

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