Following The Dow-Jones Averages
The Dow-Jones Industrial Average is a measure of price change based on 30 leading industrial stocks. In Dow Theory, this average is important because it represents companies that produce goods and services.
The Dow-Jones Transportation Average is a measure of price change based on 20 leading transportation stocks. In Dow Theory, this average is important because it represents companies that move goods and services.
A healthy economy (and stock market) requires that both producers and movers of goods are prospering. When these averages trend in the same direction, then the market trend is said to be confirmed. And when these averages diverge, then a change in market trend may be developing.
The Dow-Jones Utility Average is a measure of price change based on 15 leading utility stocks. Because utility stocks tend to pay high dividends, they are the first to react to changes in the interest rate environment. Note: The market is unlikely to sustain an advance if that advance is not supported by strength in the Dow-Jones Utility Average.
* * * * *
The Dow-Jones Transportation Average is a measure of price change based on 20 leading transportation stocks. In Dow Theory, this average is important because it represents companies that move goods and services.
A healthy economy (and stock market) requires that both producers and movers of goods are prospering. When these averages trend in the same direction, then the market trend is said to be confirmed. And when these averages diverge, then a change in market trend may be developing.
The Dow-Jones Utility Average is a measure of price change based on 15 leading utility stocks. Because utility stocks tend to pay high dividends, they are the first to react to changes in the interest rate environment. Note: The market is unlikely to sustain an advance if that advance is not supported by strength in the Dow-Jones Utility Average.
* * * * *
posted by Bob Moser at
2:07 PM
0 Comments:
Post a Comment
<< Home