The Dow Jones Industrial Average (NYSE: DJI), also called the DJIA, Dow 30, or informally the Dow Jones or the Dow is one of several stock market indices created by nineteenth century Charles Dow. Dow compiled the index as a way to gauge the performance of the industrial component of America’s stock markets. It is the second oldest continuing U.S. market index, after the Dow Jones Transportation Average, which Dow also created.

Today, the average consists of 30 of the largest and most widely held public companies in the United States.

Looking at the daily graph of the Dow, we can see that in May- June there were always big turns. Let us check the first trade chart of the Dow  to see what planets caused these turns:

12 May 2004 till 23 June 2004 transiting Mercury, which is also ruler of Asc. Is applying to natal Sun, and conjuncts it on 24 June. Transiting Jupiter applies to natal Sun, which is exact on the 23rd. The Dow went up from 9822 to 10530.

13 May 2005 till 17.June 2005 Transiting Mercury applied to Natal Sun and conjunct it exactly to date. Beneficial Venus had her role here as well, also conjunct natal Sun on the 13th. Jupiter at this time was already squaring the Sun, so the uptrend from 10140-10710 was stopped. 

10 may 2006 until 13 June 2006. Now what happened this year? Wasn’t Mercury there to do the job? Or Jupiter? Sure they were, but stronger planets came on the stage! Transiting Uranus opposed natal Mars, on the Asc, and that is no doubt more forceful then easy-wizzy Mercury. Of course there should be more than one reasons for all movements. And there were! Saturn on the Dow’s Jupiter, brought his depression as well, so the Dow fell from a high of 11684 to 10706.

13 March 2007 till 4 June 2007 After the full moon there was a run-up of 82 days as if there is no tomorrow, and something has to be accomplished. Well there were a few reasons. Transiting Venus gets closer to natal Sun, but mainly Pluto turns retro and ingresses again Sagittarius, Mercury from stationary turns direct, and applies to tr. Sun, Neptune in the sky form a sextile with Venus, and many more positive angles, which resulted in an uptrend of 12070 to13692.

22 May 2008 – ?? today Mercury is separating from natal Sun, will turn direct on the 19 June, transiting Uranus is opposing natal Uranus, a position which occurred only in June 1925, not only that, Uranus turns retro and will ” iron” this point till 26 Nov.08, and its effect will be felt after Feb 2011. Maybe the whole structure of the Dow or the trade will be changed during this period.

On the long term, the Dow is on the support line from July 2003.

Should this line be broken, or 11635, we will have to recalculate our pros and contras.

Post from: Finance Articles

Dow Jones

The main reason for its popularity is simple: it is always liquid. It shows all kinds of individual investors’ trends in security prices since 1896. Falling and rising prices of Dow Jones index come across with the S&P 500. This two major US stock indices show 95% converge.

Dow Jones Index value is very easy to calculate. The Dow Jones creators offer us to perform a usual operation: add up the prices and to divide them afterwards.

Most other indexes are weighted by market capitalization, which means that the change in the company price is multiplied by its size (ie capitalization). As a result, large companies have s greater influence on the index than those that are smaller. The Dow Jones index is only weighed by cost. A change in the price of a small company is as important here as of a huge company. Not everyone considers this an advantage; many analysts call it a drawback and say that the Dow Jones is less perfect than, for example, its main competitor S & P 500.

However, the Dow Jones enjoys great respect among private investors. And this is easy to understand: people like the fact that this index includes those companies which shares are usually bought for investors’ portfolios – usually very well-known large companies, which names are always on the rumor. Besides, a non-professional prefers to work with a small number of titles. Typically, private investors create their portfolios from the stocks of 20-25 companies, which is why they use the index which analyzes the activities of 30 companies, and that is the Dow Jones, rather than those composed of 500 or even 2000 kinds of securities.

The Dow Jones indices group is still one of the most popular stock market indicators in the U.S.. Securities of at least one of its thirty industrial companies are, as a rule, included in an average investor’s portfolio, as well as a professional manager portfolio. And it’s not surprising – because these thirty stocks together comprise approximately 1/5 of the value of all U.S. companies’ shares (about 8 trillion dollars) and about a quarter of all shares listed on the New York Stock Exchange.

Mini-futures contracts on the Dow Jones stock index are traded on CBOT (Chicago), more precisely, on its electronic division – Exchange eCBOT. A contract is traded on the exchange under one symbol. YM is an electronic contract which is traded on the electronic exchange eCBOT from 03:15 to 01:00 MSK. Contracts are concluded for H (March), M (June), U (September), Z (December).

The underlying asset of E-mini DJIA is an American stock index DJIA. E-mini DJIA – one of the most liquid futures contracts, presented at the international stock exchanges. Its trade volume is up to several million contracts per day.

The contract is very liquid and is one of the most popular speculative instruments. A variety of technical analysis methods can be applied to it. Such a tool is said to be very technical.

Long-term players, of course, will apply fundamental analysis methods to predict the dynamics of the index. The behavior of the DJIA is closely linked with the general state of the U.S. economy. Besides, American stock indices are significantly correlated with each other, so you can trade DJIA, based on the behavior of other indices. In particular, the correlation of this index with the S&P500 is nearly 95%.

DJIA index is extremely technical, because of its popularity among speculators. This index is one of the main instruments for day trading, meaning, for multiple purchases and sales in a single day. We must take into account the fact that with the opening of trade on the NYSE stock exchange liquidity increases, and the index becomes even more mobile. During the first hour of trade the number of fluctuations as a rule increases and afterwards for some time the index is difficult to analyze with standard classical technical analysis tools. Still, the greatest volatility of this instrument is observed in the second half of the trading session, moreover, during the last hour of trade gaps may take place. The liquidity of YM increases dramatically when European players enter the market.

The dynamics of the DJIA is influenced by many factors. Among them are macro-economic indicators of U.S. and world economy, earnings reports of American companies, and authorities’ declarations. War, terrorism, natural disasters influence not only the currency market but the stock market as well.

From the perspective of macroeconomics the following indicators are important to us:
- State of the foreign exchange market;
- Gross domestic and gross national product;
- Inflation, unemployment and interest rates, exports and imports;
- The value of public spending and borrowing in the financial market.

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Dow Jones Index – General Information

Where is the Dow Jones Charts Going Now?

After extreme volatility within the stock market, merchants and investors try to decide which method the market will head. We had vastly different views, and a few guys even see the Dow going to 4200-5000 by mid-2011.

Prepare dinner Sees a Cyclical Restoration

Cook remains to be bullish in the marketplace, though he expects the sovereign debt crisis to persist for many years. He expects the S&P to trade in a spread of 1,a hundred and forty and 1,240 this summer, but expects it to rise near 1,300 by the tip of 2010. This buying and selling range would hold the Dow in the mid 10,000 to 12,000 range. Like many different analysts, he believes the market remains to be in the early levels of a cyclical recovery.
I see Dow 4,200-5,000 by mid-2011

I’m more concerned with the sovereign debt disaster in Europe and its impact on the U.S. I imagine the true story is the rise within the Libor and expects lots of pressure on the U.S. government to compete with that rate. He further warned that the VIX is again in full power and sees the Dow falling close to four,200 to 5,000 by the second quarter of 2011.

What Do the Dow Jones Live Say About Dow 5,000?

Using technical analysis to forecast a drop of this magnitude is tough at this point. There are no clear chart patterns forecasting this drop. A head and shoulders pattern predicted the 2007/2008 crash, and an inverse head and shoulders pattern predicted the 2009 bottom and bull market rally. It’s potential a head and shoulders high may form, however it is in the early stages of creating and yet to be confirmed. The target price of the sample would measure to concerning the 5,000 level.

Simply the Beginning of the Promoting?

Many traders who research Elliot Wave Idea believe the subsequent wave of promoting is about to begin. This wave is known as Major Wave 3, and would be the third of 5 whole waves. Wave 1 was the huge dump from the 2007 high, wave 2 was the strong bull market rally seen in 2009, and wave three is predicted to be a vicious unload that may take the Dow right down to in regards to the 5,000 level. As if Dow 5,000 isn’t scary enough, there would still be a fifth wave of selling that would take the Dow even decrease in all probability in the direction of the top of 2012. This might very properly be a repeat of the sell off much like the one seen just after the Dow peaked in 1930.

Private Equity Leaders Examine Current Market Questions and Challenges at Dow Jones Private Equity Analyst Limited …
The Dow Jones Private Equity Analyst Limited Partners Summit will bring together leading limited partners to discuss the most pressing issues facing investors and fund managers focused on venture capital, buyout, distressed and secondary deals.
Read more on PR Newswire via Yahoo! Finance

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Why the Dow Jones might be beneath 5000 by mid-2011

The principle cause for its recognition is straightforward: it’s always liquid. It reveals every kind of particular person investors’ trends in security costs since 1896. Falling and rising prices of Dow Jones index come across with the S&P 500. This main US inventory indices present 95% converge.

DowJones Index value could be very simple to calculate. The Dow Jones creators provide us to perform a normal operation: add up the costs and to divide them afterwards

Most other indexes are weighted by market capitalization, which signifies that the change within the company value is multiplied by its size (ie capitalization). As a result, large companies have s better affect on the index than these which might be smaller. The Dow Jones index is barely weighed by cost. A change within the price of a small company is as important here as of a huge company. Not everybody considers this a bonus; many analysts call it a downside and say that the Dow Jones is less good than, for instance, its main competitor S & P 500.

Nevertheless, the Dow Jones enjoys nice respect amongst private investors. And that is simple to understand: individuals like the truth that this index includes these companies which shares are normally purchased for buyers’ portfolios – normally very well-known giant corporations, which names are at all times on the rumor. Besides, a non-skilled prefers to work with a small variety of titles. Sometimes, non-public investors create their portfolios from the stocks of 20-25 firms, which is why they use the index which analyzes the activities of 30 corporations, and that is the Dow Jones, reasonably than these composed of 500 and even 2000 kinds of securities.

The Dow Jones indices group continues to be one of the crucial standard inventory market indicators in the U.S.. Securities of no less than considered one of its thirty industrial corporations are, as a rule, included in a mean investor’s portfolio, in addition to a professional manager portfolio. And it’s not stunning – because these thirty stocks together comprise approximately 1/5 of the value of all U.S. corporations’ shares (about eight trillion dollars) and a couple of quarter of all shares listed on the New York Inventory Exchange.

Mini-futures contracts on the Dow Jones Stock Index are traded on CBOT (Chicago), more precisely, on its digital division – Trade eCBOT. A contract is traded on the trade underneath one symbol. YM is an digital contract which is traded on the electronic change eCBOT from 03:15 to 01:00 MSK. Contracts are concluded for H (March), M (June), U (September), Z (December).

The underlying asset of E-mini DJIA is an American stock index DJIA. E-mini DJIA – some of the liquid futures contracts, offered on the international inventory exchanges. Its trade quantity is up to several million contracts per day.

The contract may be very liquid and is among the hottest speculative instruments. Quite a lot of technical evaluation strategies can be utilized to it. Such an instrument is said to be very technical.

Lengthy-term gamers, after all, will apply basic evaluation methods to foretell the dynamics of the index. The conduct of the DJIA is closely linked with the general state of the U.S. economy. In addition to, American inventory indices are significantly correlated with each other, so you can commerce DJIA, primarily based on the habits of different indices. Specifically, the correlation of this index with the S&P500; is almost ninety five%.

DJIA index is extraordinarily technical, because of its reputation amongst speculators. Trying on the Dow Jones Chart, this index is likely one of the main devices for day trading, meaning, for a number of purchases and gross sales in a single day. We must take note of the truth that with the opening of commerce on the NYSE stock alternate liquidity will increase, and the index turns into much more mobile. During the first hour of trade the number of fluctuations as a rule will increase and afterwards for some time the index is tough to research with customary classical technical analysis tools. Nonetheless, the best volatility of this instrument is noticed within the second half of the buying and selling session, moreover, during the last hour of trade gaps might take place. The liquidity of YM increases dramatically when European gamers enter the market.

The dynamics of the DJIA is influenced by many factors. Amongst them are macro-financial indicators of U.S. and world economy, earnings reviews of American corporations, and authorities’ declarations. Battle, terrorism, pure disasters influence not only the currency market but the inventory market as well.

From the angle of macroeconomics the next indicators are important:
- State of the foreign exchange market;
- Gross domestic and gross national product;
- Inflation, unemployment and rates of interest, exports and imports;
- The worth of public spending and borrowing within the financial market.

Dow Jones Industrial Average Hits 2011 High On Good Numbers
The Dow Jones industrial average exceeded 12,400 Friday morning, a new 2011 high during early trading. This came after numbers released showed the jobless rate at the lowest level in two years. The Dow’s 100-point gain early in the day seemed unwarranted because the employment report was just slightly better than expected, said Jack Ablin, chief investment officer at Harris Private Bank in…
Read more on ThirdAge

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Dow Jones Index – General Data

The news makes such a big deal about the Dow Jones Index these days that even those who do not know anything about stocks or investing have become interested in learning all about the Dow. After all, if it matters so much, then it must be important. So, what or who is the Dow Jones? And why does it or he mean so much?

Formally known as the Dow Jones Industrial Average (DJIA), the Dow Jones, or simply the Dow, is a stock market index. It measures the performance of what it considers as 30 of the largest and most influential public companies based in the United States. It gauges how these 30 stocks perform in a standard trading session in the stock market. Founded by Wall Street Journal Editor and Dow Jones and Company founder Charles Dow in 1896, this index initially measured the dollar average of 12 stocks from leading American industries. (Note: Jones came from Dow’s business associate and statistician Edward Jones.) It is the second oldest US market index after the Dow Jones Transportation Average which Dow himself also created.

Currently the 30 companies that compose the Dow include 3M, Alcoa, American Express, AT&T, Bank of America, Boeing, Caterpillar, Chevron Corporation, Cisco Systems, Coca-Cola, DuPont, ExxonMobil, General Electric, Hewlett-Packard, Home Depot, Intel, IBM, Johnson & Johnson, JPMorgan Chase, Kraft Foods, McDonald’s, Merck, Microsoft, Pfizer, Procter & Gamble, Travelers, United Technologies, Verizon Communications, Wal-Mart and Walt Disney.

Now, the DJIA is a benchmark that is closely monitored by the news or financial service firms to determine how well the American economy is doing in the industrial sector. The performance of the Dow is not only influenced by corporate and economic reports. Political events such as war and terrorism whether they happen here or abroad and natural disasters that have the potential to undermine the economy also influence the performance of the Dow. When combined with NASDAQ Composite, the S&P 500 and the Russell 2000 Index, the Dow is widely accepted as a good indicator of the health of the economy.

Calculating the Dow involves getting the sum of the prices of all 30 stocks and then dividing it by the Dow Divisor which isn’t constant but changes when stock splits (the time when a company changes the number of shares its stockholders have and adjusts the price) occur or when new companies are being added or removed. As of March 2010, the Dow Divisor stands at 0.132319125. By factoring these economic movements in the computation, the Dow is kept consistent over time and a meaningful comparison can be made to the figures last year or those of ten years ago.

While the Dow has survived as a popular gauge of stock market and economic activity for more than a hundred years now, critics cite the fact that since it only tracks a meager sampling of 30 companies, it is not representative of the real pulse of the market. This was evident in 2000 when the Dow surpassed the 11,000 mark. There wasn’t much cause for celebration then since the majority of the non-index companies had their stock prices declining.

Last but not least, don’t forget to check out this MarketClub review as well as this article called “MarketClub scam?”.

Post from: Finance Articles

The Dow Jones – What You Need to Know

If you are a stock market investor or a gold investor, or both, today’s PROFIT CONFIDENTIAL is a must-read. Why? Because, by the time you are finished reading this issue, you could very well be convinced long-term that the stock market is going down and gold is going up. And you can make a lot of money from these moves.

Let’s start with the important numbers all investors should be aware of:

Stock history first: The Dow Jones Industrial Average opened the year 2000 at 10,786. The same index ended 2010 at 11,577.50. In a nutshell, if you were an investor in the Dow Jones Industrial Average, your capital gain appreciation over the past 11 years would have been a paltry 7.3%. (No wonder we have always preferred micro-cap stocks, penny stocks and small-cap stocks!)

Gold history now: At the beginning of the year 2000, gold bullion was trading at 0.00 per ounce. Gold bullion closed out 2010 at ,422 per ounce—a gain of 407% in 11 years.

Now, let’s pretend you can’t buy the stocks that comprise the Dow Jones Industrial Average in U.S. dollars, but you can only buy them with gold bullion. Taking the numbers above, in 2000, it would have taken 38.5 ounces of gold to buy the Dow Jones Industrial Average. At the end of 2010, it would have taken only 8.2 ounces of gold to buy the Dow Jones Industrial Average. In other words, when measured in gold and not dollars, the value of the 30 big stocks that make up the Dow Jones Industrials has plummeted over the past decade.

Now, when we look back at almost a century of data in respect to the relationship between gold bullion and the Dow Jones Industrials (often referred to as the Dow Jones Gold Ratio), it gets really interesting.

In the period from 1930 to 1949, a 19-year span, the price of the Dow Jones Industrial Average measured in gold bullion was under 5.0 (during that 19-year period it would have taken less than five ounces of gold to figuratively buy the Dow Jones Industrial Averages’ index).

In the period from 1974 to 1989, a 15-year span, the price of the Dow Jones Industrial Average measured in gold bullion was under 5.0 again.

As I started writing years ago, with the sharp rise in the price of gold since the year 2000, I believe we are entering another multi-year period where it will cost less than five ounces of gold to buy the Dow Jones Industrial Average. To see that happen, the price of gold needs to rise sharply, or the stock market has to come down, or both events need to occur.

Now the scary part: over the last century there have been three times when only one ounce of gold could buy the Dow Jones Industrial Average. If we are headed close to that level again (which I believe we are), fortunes will be made over the next few years on the long side of gold and short side of stocks.

Michael’s Personal Notes:

Words of wisdom from our esteemed technical analyst, Anthony Jasansky, P. Eng., on President Obama inadvertently putting the brakes on the stock market rally:

“Money talks and it has been talking very loud after Uncle Ben started the money printing presses at the old Fed in late 2008. He was so impressed by the results of the magical out-of-thin air creation of .75 trillion—dubbed ingeniously as ‘quantitative easing (QE)’—that, in the fall of 2010, he cranked up the printing presses again, launching the 0-billion QE2.

“Though these two huge money injections have been credited with reversing financial and economic calamity, they still fell short on some important fronts. Among the notable failings of QE are the anemic recovery in GDP, lack of growth in employment, continued weakness in residential and commercial real estate, the battered U.S. dollar, and unexpectedly higher yields of long-term treasuries and bonds.

“When recently questioned on the effectiveness of QE, the Fed’s chairman has pointed to the strong stock market as one important benefit. Without missing a beat, the U.S. President in his January 25 State of the Union speech mentioned the recovery in the stock market as being the result of government actions to prevent a depression. Knowing how perverse the market can be, Obama’s bullish assertion may turn out be a timely signal for the stocks to take a deep breather.”

Where the Market Stands; Where it’s Headed:

Could the bear market rally in stocks be over? After all, the Dow Jones Industrials suddenly fell 166 points on Friday. Last Friday was a wake-up call for investors and traders getting too cocky with this market. Stocks do not go up in a straight line week after week (as has been the case for most of December 2010 and this January).

While I need to see more action from the stock market before I throw in the towel on the bear market rally that started in March of 2009, I doubt the rally is over. This week opens with the Dow Jones Industrial Average up 2.1% for 2011.

What He Said:

“‘Home sales down 8.4%, could be the bottom,’ read the headline in last Friday’s USA Today. What do they know that I don’t? They know what realtors and their associations tell them and that’s about it. Unfortunately, the real estate news is predominately written by reporters—not real estate investors with years of experience to share. The hard facts about the real estate market in the U.S. are truly scary. How can the U.S. economy escape the hard landing in U.S. home prices? As we’ll soon find out, it simply can’t!” Michael Lombardi in PROFIT CONFIDENTIAL, January 31, 2007. While the popular media was predicting a bottoming of the real estate market in 2007, Michael was preparing his readers for the worst of times ahead.

Question by water_skipper: What was the original formula to calculate the Dow Jones Industrials Average? What is the current formula?
What was the original formula to calculate the Dow Jones Industrials Average? What is the current formula? My agenda is to calculate the Dow Jones Industrials Average using the original formula to show why “buy and hold” investing is a terrible idea.

Best answer:

Answer by Common Sense
The formula never changed. It’s the average total of the closing stock prices of 30 selected stocks.

Add your own answer in the comments!

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Dow Jones Gold Ratio: Making Money from this All-Important Indicator

Dow Jones Index

Dow Jones Index is not only one of the most important market indicator, but is also second oldest US index.  Dow Jones Industrial Average (DJIA), also the Industrial Average, the Dow Jones Index, the Dow Jones, the Dow 30, the Dow, was introduced in 1896 by Charles Dow, Wall Street Journal editor and Dow Jones & Company co-founder. Dow Jones is named by Charles Dow and his business business associate Edward Jones, who was statistician.

Today Industrial portion of the name does not reflect real nature of index companies, as we must know that at the time the biggest and most important companies were heavy industrial corporations. So most of modern 30 components have little or nothing to do with traditional heavy industry.

Investing

Investing in the Dow Jones Index is made widely accessible in equities through exchange-traded funds (ETFs) as well as in derivatives through option contracts and futures contracts.

For “week-end-investors” is investing in index ETFs very reasonable decision due to several reasons: 1. As index exchange-traded funds task is only to follow index are their commissions lower comparing with other ETFs. 2. Index exchange-traded funds earnings are rarely exceeded by other ETFs. 3. As the components in ETFs must be exactly the same and with the same proportion as in index, prevent ETFs managers from speculations and fraud activity.

With development of web is investing in the Dow Jones Index even more accessible, as we have internet trading platforms and market news accessible from our homes:

References: Dow Jones Index

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Dow Jones Index

Following 4 months of modest but regular positive factors, the Dow Jones Financial Indicator (ESI) fell to 40.7 in September, down from 43.2 in August and its largest one- month drop since October 2008. And while the Indicator has historically declined in September, there are indicators that the economic recovery is faltering with a sharp enhance in negative financial stories over the last seven days of the month.

“It may very well be the decline merely reflects a seasonal impact as a result of on balance over the previous twenty years the ESI has tended to dip throughout September,” Dow Jones Newswires “Money Talks” Columnist Alen Mattich said.

Mattich factors out, nevertheless, “A weekly analysis of the ESI showed significantly sharp erosion in the Indicator during the past seven days. Had been this pattern to proceed over the coming weeks, it might signal a sharply growing danger of a double dip for the U.S. economy.”

The ESI is determined by in-depth evaluation of nationwide information coverage across 15 each day newspapers.

Among the many negative tales within the media during the month had been an article charting the cost to the Boston economy of the Red Sox failing to make the playoffs; shortcomings in Obama’s flagship mortgage-reduction program; the monetary issues of the Washington Nationwide Opera; and coverage of census figures that present more single couples live together maybe because of harsher economic conditions.

The Dow Jones Economic Sentiment Indicator goals to predict the health of the U.S. economic system by analyzing the coverage of 15 main every day newspapers within the U.S. Utilizing a proprietary algorithm and derived knowledge know-how, the ESI examines every article in every of the newspapers for constructive and negative sentiment concerning the economy. The indicator is calculated by Dow Jones Perception, a media monitoring and evaluation tool. The expertise used for the ESI additionally powers Dow Jones Lexicon, a proprietary dictionary that enables traders and analysts to find out sentiment, frequency and other relevant complicated patterns inside news to develop predictive trading strategies.

The ESI’s back-testing to 1990 reveals that the ESI clearly highlighted the danger that the U.S. economy was sliding into recession in 2001 and 2008 and suggests the indicator can assist predict financial turning points as much as seven months in advance of different indicators.

Dow Jones Insight uses revolutionary textual content mining and analytic technologies to assist organizations keep informed about related issues, news, conversations and developments rising in mainstream, Internet and social media. Dow Jones Insight’s international content material collection consists of greater than 25,000 information and knowledge sources as well as blogs, message boards, and posts from YouTube and Twitter.

About Dow Jones Today
Dow Jones & Company is a Information Corporation company (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) and a leading provider of world information and enterprise information. Its principal merchandise embody The Wall Avenue Journal, Dow Jones Newswires, Dow Jones Factiva, Barron’s and MarketWatch. By way of its Local Media Group, Dow Jones operates group-based newspapers and Internet sites. Dow Jones also provides news content material to television and radio stations.

The Dow Jones Economic Sentiment Indicator is supplied for evaluation functions only and Dow Jones makes no illustration that the indicator is a definitive predictor of sentiment or the health of the U.S. economy. This report does not in any means mirror an opinion of Dow Jones relating to the U.S. economic system or the suitability of any investments.

Dow Jones Industrial Average Futures Flat on Friday
Dow Jones industrial average futures are up 1 point, or less than 0.1 percent, at 11,647 in pre-market trading on Friday. The expectations are that today will be a very flat day on Wall Street. Investors are avoiding making any big bets on the stock market ahead of the government’s December report on job creation and unemployment. The Labor Department’s monthly
Read more on ThirdAge

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Dow Jones Today Economic Sentiment Indicator Drops in September 2010

Over the last couple of years we have seen increased market volatility as the credit crunch and hesitant recovery have changed the face of the financial landscape. Nowhere has this been more obvious than the Dow Jones Index.

Many investors have been trading the Dow Jones in an attempt to capitalise on the market swings. If you are looking to trade the US markets it is important to fully consider your options.

One thing to bear in mind is that you can get carried away when you start investing, particularly when thinking about the amount of money you might make. And making a profit is rarely seen as a bad thing. Still, investors have to remember that they won’t profit on every trade.

Whether you speculate on stocks or even if you invest via newer products, such as ETFs or CFDs, there are always risks.

As an investor looking to trade the financial markets you may find a range of trading options available. Currency markets? Individual stocks and shares? Commodities? Nowadays many investors are turning to financial spread betting. Spread betting offers a convenient trading option for both experienced traders and smaller investors.

We have talked about the fact that there are potential downsides to investing, you can lose money. From property investment to share trading, every form of speculative investment can result in a loss. With spread betting, these losses can be greater than your initial stake size.

The following risk warning also provides you with a couple of other handy pointers, ‘spread betting does carry a high level of risk. Before trading, please ensure that spread betting matches your investment objectives. Make sure you familiarise yourself with the risks. If necessary, seek independent advice’.

Having said that, you are able to put a limit on the size of your position to help reduce your potential losses without impacting your upside. You can also employ smaller stake sizes such as £1 per point or per point.

If you only want to gain a little exposure then you could trade the popular markets such as the Stock Market Indices, ie speculate on whether the Dow Jones, FTSE 100, German 30 or French 40 etc will increase or decrease.

If you speculate on the Dow Jones to go up, with a £1 per point stake, and it goes up by 120 points then you would make 120 points x £1 per point = £120.

You are also able to trade the markets in Euros and Dollars. If you want to trade in Dollars then 120 points x per point = 0.

Of course if the market went against you, dropping by say 90 points, then with a £1 stake you would lose 90 points x £1 per point = £90.

Obviously this would be a fairly poor start. However, with firms like paddypowertrader you can add a Stop Loss at let’s say, 30 points.

If you were betting on the Dow Jones this would mean that your bet would be closed if the Dow moved against you by 30 points. Therefore, instead of losing £90, you’d only lose 30 points x £1 per point = £30. (It should be noted that not all Stop Losses are guaranteed).

However, assuming you correctly predicted the direction of the market, your upside would still be £120 if it moved 120 points or £60 if the Dow Jones moved 60 points.

There are a wide range of benefits with spread betting, it is not all about risk management.

As a result of the large variety of available markets, spread betting is an investment instrument worth thinking about. Most spread betting companies offer thousands of international markets which range from indices, shares and currencies to commodities such as Gold, Oil and Copper.

Investors are able buy or sell financial instruments. This is very useful as it allows you to trade on a given market to move the way that you believe it will go. Spread betting does not force you to bet on a market to increase, you can speculate on a market to fall.

Financial spread betting is tax free*. There is no actual exchange of any assets; you are just spread betting on the future value of a market.

If you are trading stocks and shares then you normally face broker’s fees and/or commissions. When financial spread betting, trades are not subject to these costs.

You might be thinking, this sounds good but what’s the catch? Well, as we have said, there are downsides. Before speculating on the Dow Jones or any other markets, make sure you have fully considered the risks. Remember that Stop Losses and smaller stakes can help lower your risk.

* Based on current UK tax law. If you pay taxes in another jurisdiction this may vary.

Question by Willamette: How much has the Dow Jones Industrial Average grown during the Clinton and Bush Administrations?
Hi, could somebody tell me the number amount the Dow Jones has grown during the Clinton Years (1993-2000) and the Bush Years (2001-2008). Thanks. It would also be cool if you could comment on the numbers.
I’m just looking for a rough estimate. It can be the difference between what it was at the start of 1993 to the end of 2000. And then start of 2001 to the latest.
Thanks.

Best answer:

Answer by clockneko
http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=950302800000&chddm=819506&q=INDEXDJX:.DJI&ntsp=0

That is Clinton’s time.

http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1227041280000&chddm=872207&q=INDEXDJX:.DJI&ntsp=0

thaat is Bush’s time.

Clinton’s administration it went up nearly 8700 points.

Bush’s it went down near 2900 points.

Know better? Leave your own answer in the comments!

Post from: Finance Articles

Stock Market Trading and the Dow Jones

With the world in recovery mode, many are still questioning how the financial markets got so out of control. There are certainly new investment opportunities in the current environment and it’s always a good time to review your portfolio

According to Simon Denham of Financial Spreads, “In all this [market uncertainty] it must be admitted that, while equities remain attractive versus everything else, we have not had a serious pull back for quite some time. The fall through June and early July comes to mind but even this did not seem particularly violent at the time.

“[As we come to the end of 2009] the Dow Jones appears to have some misgivings about remaining a five figure number. The DJIA has now rejected the 10,000 mark three times. Having said that, we are now uneasily pondering the continuation of the rally”.

So to me it looks like the Dow could go either way. But how and where to trade the Dow Jones Index?

One option is spread trading – an increasingly common form of trading. There are a wide range of benefits. The variety of trading options, speed and ease of making a trade are making it more and more popular.

There are downsides to all forms of investing and with spread trading you need to be careful because you can lose more than your initial investment.

Having said that, there is a wide range of markets on offer. You can speculate on thousands of markets from the popular Dow Jones Index and Pound / Dollar exchange rate, to the not so popular Coffee, Dollar / Peso and Interest Rate markets.

Also, because you are trading directly with a spread betting company there are no broker’s fees. And, should you choose to do so, you can close a spread bet early. This can help secure profits or prevent further losses.

Back to the Dow though, how does the market work? Should you decide to spread bet on the index then, looking at a spread trading website like GFT, you may see a spread of 9800 – 9803.

As a result, you could spread bet on the Dow Jones to move above 9803 or below 9800.

For this example, you could choose to spread bet £2 for every point the Dow Jones rises or falls.

If you bought the Dow Jones at 9803 and the Dow Jones index went up then the spread could change to 9847 – 9850. Therefore, you could close your trade for a profit by selling at 9847.

Your Profit (or loss) = (settlement price of the market – opening price of the market) x stake
Your Profit (or loss) = (9847 – 9803) x £2 stake
Your Profit (or loss) = £88 profit

The markets can of course fall, if the market were to drop to, for example, 9761 – 9764 you might decide to close your Dow Jones spread bet to prevent further losses. In that case, you would sell back at 9761.0.

So, with the same £2 per point stake:

Your Profit (or loss) = (settlement price of the market – opening price of the market) x stake
Your Profit (or loss) = (9761 – 9803) x £2 stake
Your Profit (or loss) = -£84 loss

So whilst the above illustrates the positives, it is important to understand the negatives.

Spread bets carry a high level of risk to your capital so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment objectives. Make sure you familiarise yourself with the risks involved. If necessary seek independent advice.

* Tax law can be changed or may differ depending on your personal circumstances.

Post from: Finance Articles

Trading the Dow Jones Index