The market is being held up by the Dow Jones Industrial Average today. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $121.26, +0.31 (+0.26%) while the S&P 500 and NASDAQ are both flat to negative. Most average investors will not think anything of this disparity but a true pro will always take note.
Stocks that are in the Dow Jones Industrial Average are thought of blue chip, safe plays. Some of these Dow components are 3M Company (NYSE:MMM) and International Business Machines Corp. (NYSE:IBM). Both stocks pay solid dividends and are considered low risk in terms of investments. These two stocks, along with other Dow Jones Industrial components are leading the market.
When the safe plays charge higher and the riskier investments lag, it shows the risk appetite of investors and can analyze the overall market sentiment. The Dow stocks leading means investors should be slightly more cautious and be more so in cash. It may mean a stock market fall is in the near future.
Gareth Soloway
InTheMoneyStocks.com
