The following chart shows all 30 dow components sorted by weight in the index.
| Company | Weight |
|---|---|
| IBM | 9.56 |
| Caterpillar | 6.15 |
| Chevron | 5.81 |
| 3M | 5.67 |
| United Technologies | 5.22 |
| McDonalds | 5.08 |
| ExxonMobil | 4.75 |
| Coca-Cola | 4.28 |
| Boeing | 4.24 |
| Procter & Gamble | 4.2 |
| Johnson & Johnson | 4.13 |
| Travelers | 3.64 |
| Wal Mart | 3.58 |
| Dupont | 3.25 |
| American Express | 3.05 |
| Hewlett Packard | 2.72 |
| JPMorgan Chase | 2.66 |
| Disney | 2.44 |
| Merck | 2.42 |
| Home Depot | 2.3 |
| Verizon Communications | 2.29 |
| Kraft Foods | 2.08 |
| AT&T | 1.92 |
| Microsoft | 1.84 |
| Intel | 1.41 |
| Cisco Systems | 1.29 |
| General Electric | 1.16 |
| Pfizer | 1.13 |
| Alcoa | 0.92 |
| Bank of America | 0.81 |
NASDAQ & DOW Patterns
IBM is one of the largest technology companies listed on NASDAQ and it is the company with the heaviest weight on the DOW components. You may wonder if there are any patterns between the NASDAQ and DOW indexes. One thing I notice is that DOW follows NASDAQ during intraday trading. For example, if DOW opens higher while NASDAQ opens lower, DOW will eventually go down that day. If DOW opens lower while NASAQ opens higher, then DOW will go up that day. Of course, there is no 100% correlation or everyone makes money and the pattern only works during a period of time. A couple of months ago, the S&P 500 follows the company GS stock price and now it no longer works. The lesson here is that you as a trader should always look for patterns on the stock market and try to gain an edge over other traders.
