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Dow Jones Industrial Average Direction Starts Chart PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. =================================================================== Philosophy is to identify the cause and characteristics of direction. Proprietary criteria, definitions and logic are given to a computer which decifers price, time and volume data, calculates Direction Starts and four types of activity. The four types of activity are categorized and encoded as: Up Buying = Buying, Down Selling = Selling, High Selling = HS Low Buying = LB White vertical line identifies the new day. Pacific time and date of the new day are below. Volume information is sent from the exchanges and is a numerical count. Basic segment sequence: 1) a start, 2) market continues direction or not, 3) go flat. (Not auto-reverse, reverse.) =================================================================== Trading is not easy and timing is a factor. Some people have busy schedules, projects to work on and simply don't have time to study and monitor markets. Some people don't have a computer connected to receive, and programmed to analyze streaming data from the exchanges. Furthermore, some people might not have the specific market experience or haven't researched in depth the combination of market understanding, market logic and programming. Without all three Ts: Time + Tools + Training, what kind of market timing will one have? Click here for a complimentary, free trial of Direction Starts chart service.

Facts on the Dow Jones Industrial Average Futures and Options Contract Most Widely Followed Stock Index The Dow Jones Industrial Average (DJIA) is arguably the most widely followed and recognized stock index. The index is made up of a diversified portfolio of 30 top-quality blue chip stocks. Some of the stocks that comprise the DJIA are IBM, Proctor & Gamble, Hewlett Packard, Coca-Cola, Johnson & Johnson, and other well recognized big name companies. How to Compute the DJIA Contract Value The cash value of the $10 DJIA futures contract is ten times the Dow Index. For example, if the Dow is at 10,000, the value of the contract is $100,000 (10,000 x $10 = $100,000). For the E-Mini $5 contract, if the Dow is at 10,000, the value of the contract is $50,000 (10,000 x $5 = $50,000). Each point move in the Dow Jones Industrial Average is equal to $10 in the $10 DJIA Futures Contract, and equal to $5 in the DJIA E-Mini Contract. For example, if the Dow moved 50 points in a day, it would be equivalent to $500 in the $10 DJIA futures contract and $250 in the $5 Mini DJIA futures. Maximum Leverage If you bought the stocks outright in the DJIA, the most you could leverage them on margin would be 50%. You would have to post about $50,000+ to participate in the basket of stocks in the DJIA compared to the $5,000 needed to participate in the same stocks with a Mini DJIA futures contract. Of course, with greater leverage, the risk of greater loss and opportunity for substantial profit exists. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. Multiple Uses Gives Wide Appeal You can attempt to use the contract for outright speculative gain or to hedge all or part of your investment portfolio. There are numerous trading strategies to accomplish these goals. Please note: The purpose of this report was to give a better understanding of the DJIA Futures contract. Besides using the contract to capitalize on the rise or fall in the Dow, it can be useful in helping hedge an existing stock portfolio. Dow Jones Industrial Average Daily, January 1st to November 8th, 1929 PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. Dow Jones Industrial Average Peaked August 25th, 1987 Before October, 1987 Stock Market Crash PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. Dow Jones Industrial Average, May 6th, 2010 "Flash Crash" PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS.

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