Quote:
Originally Posted by Vegas69
Greg, I don't want you to have a day off. I haven't been doing this long but today was interesting.
The DJIA declined .41%.
The Nasdaq increased .3%.
My account went UP .23% today.
What's interesting is 3 out of 4 of best performers increased along with my WORST performer.
Is this just due to my account characteristics or did everybody see this today? Normally the DIJA and Nasdaq seem to follow suit. Why was today different?
I know this is over analytical but I'm trying to learn a little more about the stock market..
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Good question Todd -- with no explanation except that the DJIA -- is the DOW JONES INDUSTRIAL AVERAGE.... so if you're not invested in much that's actually in the Dow --- then you're not tracking with them.
People don't really understand these indexes.... and without writing a book about it I'll give a brief explanation:
"The Dow" is made up of 30 stocks that they pick --- It's PRICE WEIGHTED - so they add up all 30 stocks and then divide that number by 30 to get the "Average". Since there's ONLY 30 STOCKS that actually make up "The Dow" -- you can see how if you don't own any/many of them - your day can be different than their day.
The NASDAQ --- is made up of every stock traded on it's platform -- so think like 3000 stocks and they are MARKET CAP WEIGHTED --- so the bigger market cap companies pull more than the smaller caps (Cap is the value of the company - which is computed by multiplying all the outstanding shares times the closing market price per share...