InvestorsHub Logo
Followers 45
Posts 1637
Boards Moderated 1
Alias Born 10/13/2009

Re: None

Monday, 04/16/2012 10:59:29 AM

Monday, April 16, 2012 10:59:29 AM

Post# of 784
Beware Of The Dow Jones Industrial Average Lead Rally


This morning, most of the leading stocks in the Dow Jones Industrial Average (DJIA) are trading higher. Traders must remember that the DJIA is a price cap weighted index unlike the S&P 500 Index and NASDAQ Composite which are market cap weighted indexes. When a price cap weighted index trades higher it will usually signal that the high priced stocks in that indexes are trading higher. Today, International Business Machines Corp (NYSE:IBM) is the highest priced stock in the DJIA and carries the most weight. This tech giant is trading higher by $1.54 to $204.40 a share. Chevron Corp (NYSE:CVX) is the second largest stock in the DJIA by price capitalization. This leading energy stock is trading higher by $1.01 to $101.79 a share. Just between IBM, and CVX it will likely account for large percentage of the move in the DJIA. Some other large weightings in the DJIA are Caterpillar Inc (NYSE:CAT), 3M Co (NYSE:MMM), and Exxon Mobil Corp (NYSE:XOM). ...Continue reading here: http://bit.ly/IQqBYd

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.