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«inthemoneystocks».
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Featured Post
Beware the Dow Jones-Led 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,
IBM Corp
(
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
(
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
(
CAT
),
3M Co
(
MMM
) and
Exxon Mobil Corp
(
XOM
).
Traders should all beware when the DJIA leads the major stock
indexes higher. Often, large investors will park money in the DJIA
to collect a dividend if growth stocks look to be slowing down.
Remember, it does not take many stocks in the DJIA to have the
index trade into positive territory; it only takes a handful of the
high priced stocks in the index to trade higher.
Nicholas Santiago
InTheMoneyStocks.com
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CATERPILLAR INC (
CAT
): Free Stock Analysis Report
CHEVRON CORP (
CVX
): Free Stock Analysis Report
INTL BUS MACH (
IBM
): Free Stock Analysis Report
3M CO (
MMM
): Free Stock Analysis Report
EXXON MOBIL CRP (
XOM
): Free Stock Analysis Report
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