- The Dow Jones fell on Tuesday as the feeling of investors gets ham.
- The Fed's to come to the Fed prices should keep the rates pending, because uncertainty weighs on decision -makers.
- Merchants expect significant updates to commercial transactions on which the United States is working and will announce at some point.
The DOW Jones Industrial Average (DJIA) followed the drop in the wider stock market on Tuesday, the shares taking a gentle stroke before the future rate call of the Federal Reserve (Fed) on Wednesday. Investors are also waiting for any significant update of the Trump administration on a series of commercial transactions that are underway. However, the details remain light to the point of being nonexistent.
The Fed should largely keep the rates pending on Wednesday, but the Fed discussion points will gain an additional importance for market players hoping for signs of pivot in a reduction in the rate of the Fed decision -makers in the coming months. The rate markets are prices of the basic points 100-125 in the rate decreases in the next 12 months.
Fed rate reductions and commercial transactions remain elusive
The Trump administration has also been categorical that the Fed must start reducing rates. However, this position has more to do with the desire to facilitate American debt financing pressures than to support the Fed's mandate to support maximum employment and control price volatility. Until now, Fed officials have seemed structurally opposed to the interest rate cut before the appropriate time.
According to the Trump administration, a package of possible commercial transactions is found in the pipeline. The specific details, or even the countries with which these alleged trade agreements are negotiated, remain secret. According to key staff from the Trump administration, these trade agreements are negotiated with 17 to 18 countries. None of these appears to be China, which recently expressed a possible desire to approach the negotiating table, blowing up Donald Trump's claims that his administration negotiates with nomiced Chinese officials for weeks entirely out of the water.
Dow Jones Price forecast
The momentum in the large recovery of the industrial average of Dow Jones has reached an approximate patch. The price action was suspended on the exponential mobile average of 50 days (EMA) at 41,144, with a bullish dynamic which dried just in the south of the EMA 200 -day EMA at 41,620.
The handful of 41,000 prices is the new price ceiling that tenderers to beat. Technical oscillators remain pinned in an exaggerated territory, which implies that certain purchase pressure may need to find a release of blowing before another higher leg can be generated.
Dow Jones Daily Chart
Dow Jones FAQ
The industrial average of Dow Jones, one of the oldest stock market indices in the world, is compiled with the 30 most negotiated shares in the United States. The index is balanced by the price rather than weighted by capitalization. It is calculated by adding the prices of the actions of the constituents and by dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. Later, it was criticized not to be representative enough, because it only follows 30 conglomerates, unlike wider clues such as the S&P 500.
Many different factors stimulate the industrial Dow Jones (DJIA). The overall performance of component companies revealed in the profits reports of quarterly companies are the main one. American and global macroeconomic data also contribute because it has an impact on the feeling of investors. The level of interest rate, fixed by the Federal Reserve (Fed), also influences the DJIA because it affects the cost of the credit, on which many companies are highly deposited. Consequently, inflation can be a major engine as well as other measures which have an impact on the decisions of the Fed.
Dow theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the management of the industrial average Dow Jones (DJIA) and the Dow Jones transport (DJTA) and only follow the trends where the two move in the same direction. Volume is a confirmation criterion. The theory uses elements of peak and hollow analysis. Dow theory poses three trend phases: accumulation, when smart money begins to buy or sell; Public participation, when the wider public joins; And distribution, when smart money comes out.
There are several ways to exchange the DJIA. One is to use FNBs that allow investors to exchange the DJIA as a single guarantee, rather than having to buy shares in the 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average Etf (DIA). DJIA term contracts allow traders to speculate on the future value of the index and options provide the right one, but not the obligation, to buy or sell the index at a predetermined price in the future. The mutual funds allow investors to buy a part of a diversified DJIA shares portfolio, offering exposure to the overall index.
