Dow Directions

The most common question we are asked is: “Where is the Dow headed?”  Most traders/investors have a keen interest in this important indicator.  The direction of the Dow Jones Industrial Average (DJIA) has an overbearing influence on most equity investments.  Whether an individual owns mutual funds or specific stocks, most days, the direction of the Dow is a huge clue to how their overall investments are doing.

 Each morning, we analyze either the DIA (the ETF that mimics the Dow) or the YM (the electronic traded, e-mini futures contract).   Both of these instruments move in lock step with the actual index.  The easiest way to invest in a direction of the Dow is to monitor these two issues.  The DIA is a synthetic stock that you can buy and sell as easily as any company’s stock.  The YM is a futures contract.  One or the other is featured in our free daily analysis: Dow Directions.