Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2018.08.04 10:41
Difference Between Dow, Nasdaq and S&P 500 (based on the article)
In the U.S., market participants focus the majority of their attention on three indices – S&P 500, Dow Jones Industrial Average, and Nasdaq 100. These indices are of course highly correlated to one another as they track companies impacted by the same business cycle and other important macroeconomic factors.Additionally, there is some cross-over in the stocks that are included in the ‘big three’. For example, the technology giant Apple Inc. (AAPL) is a constituent included in all three. However, there are big differences between the Dow and Nasdaq and S&P 500 - such as the number and type of stocks included in each index and how index values are calculated.
How is the Dow Jones, Nasdaq, and S&P 500 Calculated?
The S&P 500, created by Standard & Poor’s in 1962, represents the broadest measure of the U.S. economy among the three major indices. The index value is calculated by weighting each company according to its market capitalization and then a divisor, which is set by S&P, is applied to produce the final value. The simple calculation is as such: sum of the market cap of all stocks included divided by the divisor, or total market cap / divisor.
The Dow Jones Industrial Average, often referred to in short as the ‘Dow’, is the oldest index, dating back to 1896 and is the most globally well known. The Dow represents 30 large cap stocks as determined by the Wall Street Journal. Unlike the S&P 500 and the Nasdaq 100, the weighting for each component in the Dow Jones Industrial Average is ranked by share price, and then a divisor applied to create the final value.
The Nasdaq 100 is the youngest of the three indices having begun trading in 1985. It represents the largest non-financial companies listed on the Nasdaq exchange and is generally regarded as a technology index given the heavy weighting given to tech-based companies. The Nasdaq 100 is based on the market capitalization of its components.
Trading Differences Between Dow Jones, S&P 500 and Nasdaq
Despite the tight correlation between the major U.S. indices, they each have their own ‘personalities’ in how they trade due to the differing make-up for each index and importance of certain companies and groups of companies (sectors). The S&P 500 is the least impacted from day-to-day by any single one stock given it is comprised of so many names. With that said, there are a handful of sectors which have the most importance on the index.
Major Differences between Dow, Nasdaq and S&P 500: Breakdown of weightings -
Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:
Same systems for MT4/MT5:
Sergey Golubev, 2018.11.15 16:31
Intra-Day Fundamentals - AUD/USD, NZD/USD and Dow Jones Index: United States Advance Retail Sales
2018-11-15 13:30 GMT | [USD - Retail Sales]
if actual > forecast (or previous good for currency (for USD in our case)
[USD - Retail Sales] = Change in the total value of sales at the retail level.
From morningstar article :
AUD/USD M5: range price movement by United States Advance Retail Sales news events
NZD/USD M5: range price movement by United States Advance Retail Sales news events
Dow Jones Index H4: range price movement by United States Advance Retail Sales news events
Same system for MT4:
Sergey Golubev, 2019.02.28 07:28
Dow Jones Industrial Average - weekly breakout with the bullish reversal; 26K level is going to be broken to above (based on the article)
Sergey Golubev, 2019.03.05 09:44
Dow Jones Industrial Average - weekly bullish ranging near bearish reversal; 26,250 level is the key for the bullish trend to be continuing (based on the article)
The chart was made on weekly timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicators from CodeBase:
Sergey Golubev, 2019.04.10 16:09
Intra-Day Fundamentals - USD/CAD, USD/JPY and Dow Jones: United States Consumer Price Index (CPI)
2019-04-10 13:30 GMT | [USD - CPI]
if actual > forecast (or previous value) = good for currency (for USD in our case)
[USD - CPI] = Change in the price of goods and services purchased by consumers.
From official report :
USD/CAD: range price movement by United States Consumer Price Index news event
USD/JPY: range price movement by United States Consumer Price Index news event
Dow Jones: range price movement by United States Consumer Price Index news event
Charts were made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:
Sergey Golubev, 2019.05.25 17:26
Dow Jones - Longest Losing Weekly Streak in 8 years (based on the article)
Forum on trading, automated trading systems
and testing trading strategies
Dow Jones Industrial Average - bullish trend to be resumed; 26,982 is the key (based
Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this
thread (free to download) together with following indicators:
By Nathan Allen and Michael Wursthorn
A rally in health-care stocks pushed the Dow Jones Industrial Average over 27000 for the first time after the Trump
administration abandoned a plan to curb drug rebates.
The decision canceled a plan that would have eliminated rebates from government drug plans, easing concerns of a massive
disruption to the U.S. pharmaceutical industry.
Shares of UnitedHealth jumped 5.1%, leading the Dow industrials higher. Meanwhile, Cigna and CVS Health added 12% and 5.7%,
respectively, helping the S&P 500 notch a slim gain in recent trading.
The Dow industrials gained 198 points, or 0.7%, to 27059, while the S&P 500 added 0.2%. The Nasdaq Composite rose 0.2%. Major
U.S. indexes extended their gains from Wednesday's session, helping to reverse stocks' recent faltering amid concerns that
investors were overestimating the likelihood of a rate cut.
Reserve Chairman Jerome Powell's dovish comments and minutes from the Fed's June policy meeting reassured traders
that further easing is the most likely course of action.
Mr. Powell is speaking again on Thursday, though analysts don't expect him to provide much new information. U.S.
consumer-inflation data will be in focus, as weak inflation would support the case for further monetary easing.
"Powell needs a low inflation number to bolster the rate-cut case. If it proves to be just like last week's employment read and also comes
in strong, then perhaps we've all been overeager for a cut," said Mike Loewengart, head of investment strategy at E*Trade.
U.S. government-bond yields, meanwhile, extended early gains after data showed that consumer prices rose in June, a sign
inflationary pressures could be stabilizing after a period of weakness. Core inflation, which strips out volatile food and
energy prices, rose faster than expected. The yield on 10-year U.S. Treasurys climbed to 2.087% from 2.061% a day earlier. Bond
prices and yields move in opposite directions.
Elsewhere, minutes from the European Central Bank's June policy meeting showed that officials are likely to consider injecting fresh
stimulus into the eurozone in light of weak inflation data. The minutes suggest policy makers will weigh cutting the bank's key
interest rate or restarting its EUR2.6 trillion ($2.92 trillion) bond-buying program.
Stocks in Europe edged lower, reversing an earlier gain, as the pan-continental Stoxx Europe 600 declined 0.2%.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com
(END) Dow Jones Newswires
July 11, 2019 11:50 ET (15:50 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Shares of UnitedHealth jumped 5.1%, leading the
Dow industrials higher. Meanwhile, Cigna and CVS Health added 12% and 5.7%, respectively, helping the S&P 500 notch a
slim gain in recent trading.
Yes, that's right - this is UnitedHealth (Metatrader 5):
Shares of UnitedHealth jumped 5.1%, leading the Dow industrials higher. Meanwhile, Cigna and CVS
Health added 12% and 5.7%, respectively, helping the S&P 500 notch a slim gain in recent trading.
and this is CVS Health (Metatrader 5):