DJI Index

viktor_k67

Junior member
Messages
41
Likes
2
The DJI index is only 1.22% up for 2015. See below at the DJI index components' charts.

I have divided the 30 DOW stocks into four group: 1) stocks with bullish sentiment, stocks which are in side-way range trading with slightly bullish bios, 2) stocks where bearish sentiment defined clearly and 4)stocks in side-way trend with some bearish signs.

As you may see from the charts below the situation is quite unstable - we have 8 clearly bullish, 7 slightly bullish, 8 clearly bearish and 7 slightly bearish stocks. And this is at the top of the DJI Trend. The DJI is not as bullish as many would like to see. Smallest shift in the bullish stocks toward the bears may actually push the DJI index into a strong correction. Basically, we have the DJI index in side-way action since February 2015. I guess the main question will be whether such strong stocks as CSCO, NKE, JPM, DIS and IBM be able to hold the DJI index until the other bearish stocks hit the bottom of their bearish trend.

Bullish Stocks

20150601csco.png

20150601dis.png

20150601gs.png

20150601ibm.png

20150601nke.png

20150601pfe.png

20150601v.png

20150601jpm.png


Slightly Bullish Stocks

20150601aapl.png

20150601ge.png

20150601intc.png

20150601mcd.png

20150601mrk.png

20150601unh.png

20150601vz.png


bearish stocks

20150601axp.png

20150601cat.png

20150601cvx.png

20150601dd.png

20150601mmm.png

20150601pg.png

20150601wmt.png

20150601xom.png


Slightly bearish stocks

20150601be.png

20150601hd.png

20150601jnj.png

20150601ko.png

20150601msft.png

20150601trv.png

20150601utx.png
 
For a couple of minutes this article was on the Yahoo finance
http://finance.yahoo.com/news/dow-brick-wall-waiting-collapse-120000187.html
where Louise Yamada pointed on the divergence between DJI and DJT by putting emphasis that it usually happens before a strong correction down and the possibility of 10-20% correction this summer.

On the chart below you may see the divergence between DJI (black bars) and DJT (orange line) started at the end of March 2015

chart20150603dji.png

Chart courtesy of marketvolume.com
 
and of course it will not crash 200% down.

If the fact that DJI made 200% over the past 6 years is the only argument that should keep people investing then I rest my case.
 
Interesting to see the emphasis you give the DJT. I don't follow indices and stocks that closely but it is quite rare to see the DJT get much analysis.

Oscar Carboni (https://www.youtube.com/user/futuresanalysts) does TA it and is very clear that he believes it is the leading indicator of US stock strength over the other indices, though he doesn't seem to trade it.
 
Top