The Dow Jones is not a benchmark, though the media and others like to use it as such. The weird thing about this particular average is that you couldn’t easily replicate its returns with a simple buy and hold strategy. Sure, you could buy an exchange-traded fund like the DIA etf, but you cannot recreate the performance of the DJIA like you could the S&P—by purchasing the stocks in equal weights.
What is Price Weighting?
Read more…
ETF, Investing
DOW, index, indexing, Investing, price, weighting
Its been awhile since I’ve posted some technicals of the major indices. I’m taking a glance at the Dow futures right now while the Asian market is trading down more than 4%, and it looks like our bull market run is over. There’s some interesting chart patterns forming, though, in both the price action and the RSI. Read more…
Futures and Commodities, Investing
DOW
Every news station on TV now features a “Watching the Dow” in the right hand corner of the screen. We’re becoming as interested in the daily movements of Wall Street as we were to changing gas prices on the corner of every street. Anyone who was unfamilar with the stock market a year ago is now seeing the Dow drop of every second of the day. It would be hard to find someone who still thinks the markets are doing well. Read more…
Investing
DOW
The S&P500 and the DJIA made impressive gains this week after toppling downtrends that have kept the market quiet for the past few weeks. The S&P500 bounced tremendously off its lows with the Dow replicating the trading action though not as strong as most would have hoped. The turnaround was fueled mostly by large selloffs that have priced in virtually no good news from the market. Each news item that comes out if good will bring large bounces while bad news is unlikely to do as much damage. Read more…
Investing, Stocks
DOW, S&P 500
The Dow had a wild trading session after falling slowly throughout the day to eventually rebound back into positive territory. The Dow began the day trading at 7552 and closed at 8046. The spread between the highs and lows were tremendous in terms of points and percentages with a 622 point range from 7449-8071. Read more…
Stocks
DOW
The Dow Jones industrial average took a very hefty fall today back down to its recent support line. For the last two months the average has traded in virtually the same trend and found comfort in the same support area. Now that we’re on such a critical level it is important to look at how the market has acted to see if we can find out if the market will be using this line to bounce higher or if its going to fall through to retest previous recession lows. Read more…
Investing
DOW
It would be normal to accept a few hundred point loss after the Dow rallied for 889 points today. The close of the market does show some weakness, in that it touched a trendline that has held the market down for the better part of the last month. With no significant movement through the line today, and little evidence the rally is going to continue, the next few days might just kick off a heavy sell off. Read more…
Stocks
DOW
The volatile market today can tell us a lot about where we might go in the future. The entire day of trading was entirely technical, though the one minute tick chart is largely unfilled due to the amount of volatility in the market. To show how the market moved today, we’ll look at the chart patterns and support and resistance as well as the RSI divergence occurring late in the day that all played a factor in today’s trading. Read more…
Investing, Stocks
DOW
The Dow has been in freefall since November of 2007 and the decline of the real estate market. Today the Dow is nearing two critical trendlines, some that will offer support if the market makes use of them but will punish the market severely if the market falls through. Until a confirmation of support perhaps even in a bottoming candlestick pattern or a large uptick after a touch of the trend, investing has been reduced to a gamble. A gamble that the market will not enter the stages of further freefall and hit lows it hasn’t seen since the end of the tech bubble. Read more…
Investing
DOW
The failure of the bailout bill struck wall street hard today as the Dow dropped 777 points to close at 10365. Everyone was expecting that the bailout would pass, even up until the wee hours of the morning the bailout was expected to pass the house with flying colors and make its way to the White House for a guaranteed signature from president Bush. Read more…
Investing
DOW
Today the DJIA fell below the crucial 12000 and even the 11900 mark. The good news is that we’re not yet below a very important trendline and the market looks like its ready to bounce. Fundamentals like the economic stimulus package have yet to add to earnings, that we may see in the fall, but for now it appears that the market is weak until a new catalyst appears. Read more…
Investing
DOW
There is a serious resistance line still in play on the daily Dow chart. After the financial industry got the boot from investors, the market has fared pretty well. We’re back in the 12000s and keeping a reasonable trading range but there is just one trendline still in the way of Dow 13000. Read more…
Investing, Stocks
DOW
The last week in the market has told us a lot. Investors are no longer responding to credit issues by the Federal Reserve and the rapid pullback shows us that a lot of people want out. The next few months ahead look pretty rough, especially considering the technical indicators on the Dow. Read more…
Forex, Stocks
DOW
2008 has been rough. The recent losses in the Dow have prompted me to take a step back and look at future support. Unfortunately, or fortunately whichever side you play, the Dow now sits on a critical support level. Read more…
Investing
DOW
There is a theory that if you choose 10 stocks at the beginning of the year that have the highest dividend yields from the Dow Jones Industrial Average (DJI), then hold them until the end of the year, you will have returns that are higher than the returns of the entire Dow Jones Industrial Average (DJI). This is called the Dogs of the Dow theory and it has been proven to work. This year the 10 dogs of the Dow include Pfizer, Verizon (VZ), Altria (MO), AT&T (T), Citigroup (C), Merck (MRK), General Motors (GM), DuPont (DD), General Electric (GE) and JP Morgan Chase. Read more…
Stocks
DOW
HCA Inc. took the Dow over 180 points as it reached 11,051 for trading on Monday. I imagine this will be short lived, but it shows with a positive upbeat the Dow will jump forward. I think the Dow is under priced and has wonderful chance of breaking records this year, but the news of the world and energy drives the markets down. Read more…
Round Up
DOW
Bernanke talks the markets listen as the Dow has hit its second largest gain of the year jumping 212 to 11,011. Just as the Dow struck gains so did the NASDAQ 37.49 and the S&P 22.95. A very positive outlook on today’s markets. Read more…
Stocks
AAPL, Ben Bernanke, DOW
Today the markets in the USA took a bit of tumble due to the trade deficit of $63.8 billion for the month of May. The Dow fell 121.59 and NASDAQ dipped 38.62 from this news. Oil went the other direction as it is close to 75 a barrel. Read more…
Mutual Funds, Stocks
DOW
The Dow try to get back what it lost yesterday as it was up 73 to 11,225. Oil prices are holding on to the all time highs of above 75 per barrel. Read more…
Stocks
DOW
Today brought a 17th consecutive rate hike and with that the markets shot up to all highs that were last seen in 2003. The Dow jumped 216 points to 11190 as all 30 companies in the Dow were positive. Read more…
Investing
DOW
Many of us went into the week thinking the Dow would hit records along with other records. Then the Federal Reserve raised interest rates to 5% and then leaving us with the impression that it may go up again the next meeting, so the Dow was riding on a thin string for this week. Read more…
Investing
DOW, gold, oil
The Dow has reached 6 year highs gaining 138 points to hit 11,577 and is less than a 150 points from hitting all time highs. The Dow was fueled by reports of job growth and in hopes of the Federal Reserve will stop jacking up the interest rates. I am sure these played into the big jump, but other factors like most the Asian markets were closed helped the increase. Read more…
Stocks
DOW
The Dow has hit 6 year highs as it rose 71.24 to 11,354.49. Among the movers was GM as analyst move in to give their word about this potentially explosive stock in the future. GM moved up 1.74 to 23.15 a 8% percent increase in one day. Analysts are expecting GM to bring 15 percent increase in first quarter profit. Read more…
Stocks
DOW, GM
