Every now and then I look at The Global Dow Index. The Global Dow is an index of 150 corporations scattered in countries and continents around the world. The index came about by Dow Jones & Company and is comprised of blue chip stocks.
The Global Dow was formed just Like the Dow 30 index and the Dow Jones Industrial Average, the companies in the index are picked by the senior editors of The Wall Street Journal as well as the Dow Jones Newswires senior editors from three other areas of the world.
The differences between The Global Dow and the Dow 30. The Global Dow is made up of 150 stocks rather than 30 for the Dow 30 and the Global Dows components are weighted equally rather than by price like the Dow 30. You see that all 30 Dow industrial stocks are within The Global Dow and there is also some from the Dow Jones Transportation and Utility averages as well.
The thing I like the best about the The Global Dow versus all of the other index’s out there is the fact that it keeps track of the leading companies, in all industries, in most of the countries in the world, or at least the countries that matter. The companies are’nt picked for their size and popularity but are picked for their future potential as well.
The Global Dow is comprised of companies from both the emerging stock markets and the developed stock markets.
Also, The Global Dow Index has the companies within it, equally weighted. This simply means that the price fluctuations of the higher capitalized companies have the same degree of movement on the index as the smaller companies in the index.
The Global Dow index was implemented on December 31, 2000 with a base Value of 1000
Click here to see the chart…Global Dow Index August 3, 2012…Swing Trading Forecast, Head and Shoulders Pattern. Next pivot point slated for August 15th, 2012
All I can say is, you can’t get a better global picture of the economy than the chart you see above…the Global Dow Index.
Click here to get an explanation of the Head and Shoulders Pattern
This isn’t the only chart I see a head and shoulders pattern.The Canadian TSX has a head and shoulders pattern too. Some traders say that you have to play the patterns as they play out. Some traders say you need to trade the patterns when the price breaks the support or resistance line. I like to do both, sometimes, I just tight and wait. Everyone’s style is different, in the end, as long as you make money that’s all that counts.
Click here to see the chart….TSX Composite Index… August 3, 2012…Swing Trading Forecast
The next pivot point is slated August 15th and the pivot point after that is slated for September 27th. Yesterday, August 2nd was slated for a pivot point, the markets around the world felt the pain and then sprung back today. So yesterday could quite possibly be a low leading to a high on August 15th going to a low on September 27th, we’ll have to see when the time comes how things play out. One things for sure The Global Dow Index can give you a great picture of the economic world.
