The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 large, publicly-traded companies listed on the New York Stock Exchange (NYSE) and the NASDAQ.Β
The Dow is one of the oldest and most widely-watched stock market indices in the world, and is often used as a barometer of the health of the overall US stock market.
The Dow was created in 1896 by Charles Dow, the co-founder of Dow Jones & Company, which also publishes The Wall Street Journal. The original index consisted of just 12 companies, but has since expanded to include 30 companies. Companies like Apple, Boeing, Coca-Cola, JPMorgan & Chase, Disney and others.
With uncertainty surrounding the path of US rates traders took US stocks higher initially yesterday with the headline CPI print coming in below expectations at 4.9%. The question is will a miss in the US PPI send stocks higher on May 11. However, even if they do – can the gains last? Seasonally, the summer is weak for the Dow Jones. Will those weak seasonals ultimately come to bear and send the Dow sliding into the summer?
Major Trade Risks:
The major trade risk here is the US manages a soft landing and stocks rise during the summer months
Remember, donβt just trade it, but Seasonax it!