The Dow Jones Industrial Average
Bank of America (BAC) and Chevron (CVX) are the new additions to the Dow Jones Industrial Average (DJIA). They have just replaced Honeywell (HON) and Altria (MO) on the 30 companies the make up this popular composite. This is first change in companies that make up the average for 4 years.
Though the 30 companies are significant industrial companies in the US, they are not the 30 largest companies by market capitalisation. And despite the few companies that are in the index it historically has been a good barometer for market sentiment. Since 1896 the DJIA has been the most widely used and, for some, respected index in trading. How do you use the DJIA and does it have relevance in your trading?
Though the 30 companies are significant industrial companies in the US, they are not the 30 largest companies by market capitalisation. And despite the few companies that are in the index it historically has been a good barometer for market sentiment. Since 1896 the DJIA has been the most widely used and, for some, respected index in trading. How do you use the DJIA and does it have relevance in your trading?
Labels: Altria, Bank of America, Chevron, DJIA, Dow Jones Industrial Average, Honeywell
posted by SMC Trader at
2/19/2008
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