BTIG: The Fact That Apple Has Been Added Should Remind Us How Worthless The Index Is

Although shares of Apple Inc. AAPL opened strong amid news of it being added to the Dow Jones Industrial Average on March 18, some see this move as too little, too late.

Among them is Dan Greenhaus, chief strategist at BTIG. Greenhaus was on CNBC Friday to discuss why Apple's addition to Dow is ‘worthless'.

It's Worthless

"Listen, there's $7 trillion worth of assets benchmarked to the S&P, I don't know what the number is to the Dow, but it's not $7 trillion," Greenhaus said. "I think the fact that Apple has been added today should remind us how worthless the index is on its face."

"The fact that the largest and the most important company by far, by a factor of two has not been in the index, tells you all you need to know and the fact that it's been added and if the largest and the most important company is only going to be the fifth-most important company in the index further reinforces the idea that this is more or less worthless."

Tops Are A Process

When Greenhaus was asked to comment on how some people on the Street are considering Apple's addition to Dow as a top for the bull market, he said, "There's going to be a top and this whole group is going to be right at some point, but just picking up these random, meaningless data points like Apple being added or Alibaba going public as the top so to speak -- it's not how any academic or even amateur reading of history bares out the idea that tops are a process and not necessarily an event."