Discussion in 'Technical Analysis' started by gkadir, Mar 11, 2019.

  1. gkadir



    Do you think it's worth buying the dow just as a catch up play with S&P?

    Dow down because of boeing. Hopefully, when that news is priced in Dow should rally?

    Or is this too risky of a play?
    murray t turtle likes this.
  2. tommcginnis


    Two thoughts:
    1) there is a big difference between buying the DOW alone, and {selling} the S&P-DOW spread.
    2) working the spread (not so ubiquitous a US thing as overseas), step one is to make sure you've got close-to-identical notional values -- e.g., trading $5k of S&P against $5k of DOW.

    Okay -- a free additional 3) Many brokers will allow you to create a tradable contract, like "S&P-DOW" -- that will make graphing, management, but possibly *not* {tax} accounting, lots easier.
  3. gkadir


    thx Tom.

    that was a wild move. The spreads were huge, it was a very very easy trade
  4. %%
    Could work; i would not do it.WHY?? DOW/DIA tends not perform as well as SPY/S&P 500.It does not ''have to catch up @ all'' 30 companys tend not to earn or be worth anywhere near as much as 500.
    I track SDOW more than DOW. DOW is a media darling; not a benchmark @ all.Most people do business with DOW components-may not help the DOW stocks price.Good question.:cool::cool:WSJ enjoys promoting/attempting to promote LOL