The Dow Jones is a name that is known all throughout the world as one of the main Indexes in the US. Whether you’re financially savvy or not, the Dow Jones has cemented its name in everyone’s brain. Everyone wants to know what the price of the Dow Jones today, tomorrow and in the future. It’s not as simple. And it’s not hard to take advantage of understanding what it is and how it moves to turn a profit. In this blog, we’re dissecting the Dow Jones market today, and how we can take advantage of the Dow Jones today stock chart and futures chart. Trading Dow Jones futures are very lucrative.
What is the Dow Jones?
Want to know the Dow Jones stock market price? Today? Tomorrow? You have to understand what the Dow Jones is first…The Dow Jones or Dow Jones Industrial Average is a stock market that measures the stock performance of 30 American large-cap companies on stock exchanges. Inception date: May 26, 1896. With 12 large companies listed in each sector of the US stock market. In its first year, the index opened at 31.07. It was originally published as the Dow Jones Average (not industrial) in 1885, opening at 28.46.
Before the inception of the S&P 500, it was considered to be closely linked to the US economy. An inaccurate representation of an average of 30 companies, some people still consider the Dow a solid representation of the US economy. Strong Dow, strong economy. In actuality, all of the indices based on equity markets move side by side! So, yeah! technically, the Dow upside is an economic upside.
What companies are on the Dow Jones Today?
The Dow Jones Industrial Average has a massive Market Cap, $8.33 Billion by the end of 2019. The current price as of February 26th, 2020 is 27,057.10. Just 10 years, at the end of 2010, the Dow was trading at 11,577.51 with a market cap of $3.66 Billion. With huge name companies.
Check out the list below of superstar companies.
|The Home Depot||NYSE||HD|
|Johnson & Johnson||NYSE||JNJ|
|Merck & Co.||NYSE||MRK|
|Procter & Gamble||NYSE||PG|
|The Travelers Companies||NYSE||TRV|
|Walgreens Boots Alliance||NASDAQ||WBA|
|The Walt Disney Company||NYSE||DIS|
Dow Jones Stock price.
The Dow Jones has had such an incredible life cycle starting under 50 points. The index has managed to climb through the 25,000 point level in the length of time since its inception. At the peak, during the writing of this article, Dow Jones recently printed an all-time high, 29,551.42. From there with some Coronavirus fears in 2020, the Dow has fallen over 1000 points in a single day.
The largest gaining day in the Dow was December 26th, 2018, rising 1,086.25 points. The largest percentage gain in a single day was March, 15th 1933, gaining 15.34%. The largest losing day was February 5th, 2018, losing 1,175 points. The largest percentage of losses in a day was October 19th, 1987, falling 22.61%.
Dow Jones Chart.
The Dow Jones has been charted for decades now, over a century even. The chart has seen a stern upside and a lot can be told by the chart. The chart tells us the perpetual upside story of the Industrial Average. The Dow Jones chart is usually displayed as a line chart. A better version to better visualize the technical analysis is a candlestick chart.
Take a look at this line chart of the Dow Jones price chart below. There is an exponential gain over its lifetime, Through a lot of key psychological levels and easily recovered from the recession in 2008/09. It paints a picture, but it doesn’t tell us much of a story.
Now, look at the comparison of this chart on a candlestick basis below. The candlestick chart is represented on a monthly basis. Meaning one candlestick represents one month of trading. This tells more of a story of what has happened throughout the history of the Dow Jones. Down months, up months, support and resistance.
The candlestick charts are not limited to monthly candlesticks. They can be dropped to weekly, daily and intraday to show a more indepth story of the price action and potential market structure moves in the future.
Dow Jones futures and trading.
The Dow Jones in a stock market index, an industrial average. Meaning you can take advantage of price movement to generate money. Even a steady income. Even if it is trading in the 27,000 range that doesn’t mean it goes by a per share basis each costing $27,000. Rather there are different financial assets that reflect the Dow Jones price movement that is traded. First, you can trade Dow Jones ETFs and CFDs. They’re lucrative, but there’s a better option. The Dow Jones Futures market. Futures symbol YM.
The Dow Jones futures market is one of the equity markets with the highest volume meaning liquidity traded on a daily basis. Using a top tier broker like AMP futures you can trade the contract for a little margin. As low as $400 in your account to trade 1 contract. The Dow Jones futures move at a $5 per tick basis. Where 1 point is equal to 1 tick. A $5 profit or loss can be attributed to your account based on the direction you take in the market and how it moves. You can either go long or short the futures market for intraday gains. You can also swing trade these futures on a longer term basis.
For example, if you get a long trade at 27,000 and you take profit at 27,030 that is a 30 point move in the equity and a $150 gain day trading. These moves are frequent in the Dow Jones futures as they move hundreds of points in a single day. On the other hand, if you take a long at 27,000 and you get out at 26,990 that is a $50 loss. To take advantage of the downside, you have to take a short position.
There is a lot of opportunity in the futures market and they’re a good way to diversify your income. Earning a secondary income from these markets is a reality for a lot of people and this could be you! If you want to learn more about day trading futures, not just the Dow Jones futures, check out the TPA day trading course.
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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable for your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.