Dow Jones

Assignment no 2Fundamental And Technical Analysis of Dow Jones Trading and Exchange

Submitted by Muhammad Suleman Usama KhanReg # L1S14MBAM0041

Submitted To:Sir Nizam Feroz

Introduction:TheDow Jones Industrial Averageis also called theIndustrial Average, theDow 30, or simply theDow market, is astock market index. The industrial average was first calculated on May 26, 1896. Currently owned byS&P Dow Jones Indices, which is majority owned byMcGraw-Hill Financial, it is the most notable of the Dow Averages, of which the first (non-industrial) was first published on February 16, 1885. It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in thestock market.

6-july-2015

Explanation:On 6-july-2015 the trend in the US-30 or Dow Jones industrial was bearish which shows that markets closing was at low than its opening (i.e. open at 17,728.08 and close at 17,683.58). During the day the stock traded at highest price of 17,734.36 and the lowest price was about 17,564.36The market was bearish because most of the performers went worst. The worst performers of the session were Cater pillar Inc. (CAT), Chevron corporation (CVX), General electric (GE) etc.Except of bad performers the companies which outperform during the day were Apple Inc., American Express Company, and The Boeing etc.News released on 6-july-2015 was about one of the listed company in the US-30, the main heading of the news was Goldman Expands Activism Defense Group after Anderson Departure. The news was about Goldman Sachs Group Inc. is turning its activism defense team into a broader advisory group after the teams leader, William Anderson, left for Even core Partners Inc. Banks have built up practices in recent years that advice companies on how to deter and respond to activists, as the investors garner more money and institutional backing. Goldman Sachs is seeking to provide advice to companies on potential reactions and pressure from other shareholders.

Pivot Point:Pivot point= (H + L + Adjustment) / 3= 17734.36+17564.36+17683.58/3= 17660.77

R2 = PP + (R1 S1) R1 = 2 * PP Low PP S1 = 2 * PP - High S2 = Pivot (R1 S1)R1 = 2*17660.77 - 17564.36= 17757.18R2 = 17660.77 + (17757.18 17564.36) = 17853.59S1 = 2*17660.77 - 17734.36 = 17587.18S2= 17660.77 (17757.18 - 17587.18)=17490.77

7-july-2015

Explanation:On 7-july-2015 the trend in the US-30 or Dow Jones industrial was bullish which shows that markets closing was at high than its opening (i.e. open at 17,684.92 and close at 17,776.91). During the day the stock traded at highest price of 17,793.45 and the lowest price was about 17,465.68The market was bullish because most of the companies performed very well. The well performers of the session were The Boeing Company (BA), Cisco system Inc., The Walt Disney (DIS), General Electric (GE), and The Goldman Sachs Group (GS).On the other hand the companies those went worst were Apple Inc. (APPL), American Express Company (AXP), Cater Pillar (CAT) and DD etc.

On 7-july-2015 news was released about the economy of japan, the main heading of the news were Japan's Nikkei falls below 20,000, hits 7-week low. Japan's Nikkei share average fell below the psychologically important 20,000 mark on Wednesday to a seven-week low on concerns about a meltdown in Chinese shares and Greece's debt crisis.

Pivot point:Pivot point= (H + L + Adjustment) / 3= 17793.45 + 17465.68 + 17776.91 / 3= 17678.68

High = 17793.45 Low= 17465.68

R2 = PP + (R1 S1) R1 = 2 * PP Low PP S1 = 2 * PP - High S2 = Pivot (R1 S1)

R1 = 2 * 17678.68 - 17465.68=17891.68R2 = 17678.68 + (17891.68 - 17563.91)=18006.45S1 = 2 * 17678.68 - 17793.45 = 17563.91 S2= 17678.68 (17891.68-17563.91)= 17350.91

8-july-2015

Explanation:On 8-july-2015 the trend in the US-30 or Dow Jones industrial was bearish which shows that markets closing was at low than its opening (i.e. open at 17,759.01 and close at 17,515.42). During the day the stock traded at highest price of 17,759.01 and the lowest price was about 17,496.22

The market was bearish because most of the performers went worst. The worst performers of the session were Cater pillar Inc. (CAT), Chevron corporation (CVX), General electric (GE) etc.Except of bad performers the companies which outperform during the day were Apple Inc., American Express Company, and The Boeing etc.On 8-july-2015 a news was released under the main heading Muni Yields Driven Lower by Greece as Puerto Rico Woes Ignored. Yields on U.S. tax-exempt debt are the lowest since May, joining a broad fixed-income rally amid Greece's standoff with creditors even after Puerto Rico declared its $72 billion of debt un-payable.

Pivot pointPivot point= (H + L + Adjustment) / 3= 17,759.01 + 17,496.22 + 17515.42 / 3=17590.21

High = 17759.01Low= 17496.22 R2 = PP + (R1 S1) R1 = 2 * PP Low PP S1 = 2 * PP - High S2 = Pivot (R1 S1)

R1 = 2* 17590.21 - 17496.22= 17684.20R2 = 17590.21 + (17684.20 17421.41)= 17853.00S1= 2* 17590.21 - 17759.01= 17421.41S2= 17590.21 (17684.20 - 17421.41)= 17327.42

9-july-2015

Explanation: On 9-july-2015 the trend in the US-30 or Dow Jones industrial was bullish which shows that markets closing was at high than its opening (i.e. open at 17,530.38 and close at 17,548.62). During the day the stock traded at highest price of 17,764.85 and the lowest price was about 17,530.38The companies performed very well on 9-July were Cater Pillar (CAT), DD. On the other hand the companies those went worst were Apple Inc. (APPL), American Express Company (AXP), Cisco system Inc., The Walt Disney (DIS), General Electric (GE), and The Goldman Sachs Group (GS) etc.On 9-july-2015 a news was released under the main heading of U.S. Stocks Advance after China Rebounds; Greek Deadline Looms The overall bullish trend at US-30 was because of, as U.S. stocks advanced with global markets as Chinese equities rebounded the most since 2009, easing concern over economic growth. Shares pared an early rally as Greece approached a deadline for securing a bailout. Citigroup Inc. and Bank of America Corp. increased more than 1.4 percent as banks recovered from Wednesdays drop. Walgreens Boots Alliance Inc. gained 4.2 percent after quarterly profits topped analysts projections. Apple Inc. slid 2 percent to lead technology shares lower, while semiconductors retreated for a fourth day.

Pivot pointPivot point= (H + L + Adjustment) / 3= (17764.85 + 17530.38 + 17548.62) / 3= 17614.62

High = 17764.85Low= 17530.38 R2 = PP + (R1 S1) R1 = 2 * PP Low PP S1 = 2 * PP - High S2 = Pivot (R1 S1)R1 = 2 * 17614.62 - 17530.38= 17698.86R2= 17614.62 + (17698.86 17464.39)= 17849.09S1= 2*17614.62 - 17764.85= 17464.39S2= 17614.62 (17698.86 - 17464.39)= 17380.15

10-july-2015

Explanation:On 10-july-2015 the trend in the US-30 or Dow Jones industrial was bullish which shows that markets closing was at high than its opening (i.e. open at 17,561.12 and close at 17,760.41). During the day the stock traded at highest price of 17,797.49 and the lowest price was about 17,561.12The companies performed very well on 9-July were Apple Inc. (APPL), Cater Pillar (CAT), The Boeing (BA), Cisco system Inc. (CSCO), On the other hand the companies those went worst were American Express Company (AXP), The Walt Disney (DIS), General Electric (GE), DD, Chevron Corporation (CVX), and The Goldman Sachs Group (GS) etc.On 9-july-2015 news was released under the main heading of U.S. Stocks Rise Amid Optimism on Greece Proposals, China Shares. U.S. stocks joined a global rally, with the Nasdaq Composite Index posting its best advance since January, amid optimism that proposals Greece submitted to its creditors will pave the way for a bailout. Apple Inc. climbed 2.7 percent to halt a five-session slide and pace gains among technology shares. Semiconductors rebounded as Avago Technologies Ltd. and Broadcom Corp. rose more than 2.7 percent. American Airlines Group Inc. jumped 3.9 percent after the carriertrimmeddomestic growth plans this year. Citigroup Inc. and JPMorgan Chase & Co. increased at least 1.4 percent as banks gained for a second day.

Pivot pointPivot point= (H + L + Adjustment) / 3= (17797.49 + 17561.12 + 17760.41) / 3= 17706.34

High = 17797.49Low= 17561.12 R2 = PP + (R1 S1) R1 = 2 * PP Low PP S1 = 2 * PP - High S2 = Pivot (R1 S1)

R1= 2 * 17706.34 - 17561.12= 17851.56R2 = 17706.34 + (17851.56 17615.19)= 17942.71S1= 2 * 17706.34 - 17797.49= 17615.19S2 = 17706.34 (17851.56 - 17615.19)= 17469.97

Forecasting:As we had seen that initially The Dow Jones 30 fell during the start of the week, but later on we found that enough support at the 17,500 level to turn things back around and form a hammer. The hammer is a bullish sign, so we can say that the market will move in a upward momentum, and I hope so that the market then go to the price of 18,200 or may be higher than that, which means that the market will be bullish in the upcoming week.