Why is this stock so neglected?
I am a stan for DIA. I like it much better than SPY tbh. Nice options that move that reasonably priced and much more stable.
Lately, this has succumbed to similar volatility as SPY (which is curious because it used to always trade independently of SPY) but DIA is still one of my go to stocks if I want an actual day trade and not a scalp.
But let's hopefully stir some interest in this neglected cousin of SPY and do a bit of an analysis.
So, DIA is looking ... well, identical to SPY on the daily.
Maybe a TAD more bearish looking, but I anticipate it to do what SPY does (and thus, ultimately, its a cheaper alternative to trading SPY if you really think about it. Has better option prices, better greeks, etc. so.... yeah, hint hint ;) ).
But seriously, I actually am far more bullish about DIA than I am about SPY from a technical/mathematical perspective.
Let's look at the monthly chart of DIA since its nascence (below):
And now SPY
DIA has also traded extremely stably but honouring a quadratic type relationship over time. You can see this plotted out statistically in the graph below:
DIA's quadratic relationship to time yields an R value of 0.941 whereas SPY's is 0.840. What does that mean? It means that DIA has been growing at a reasonable and expected pace that is fairly linear and stable.
Thus, using this to plot out DIA's natural price currently, we get a price between 326 and 343, with its current price being 349 based on the following formula:
DIA Qudratic price = (Trading Days * -0.037) + (Trading Days Squared * 1.167E-5) + 118.704
(Currently on day 6094)
= 326
So this is fairly natural growth, IMO.
I think if the market does go into full fledged bear market and we see huge dumps. DIA will follow regardless. But if I had to be bullish about any ETF it would definitely be DIA.
Outlook for Tomorrow
As usual, I will give levels for tomorrow.
DIA's range for tomorrow is 345 - 351.
I am looking for a high around 350 to 351 with a bullish break over 349.08 (DIA operates in a much tighter, more narrow range than SPY).
If it turns out to be bearish, I am looking for a break below 348.79 towards 345.
But I am interested. For anyone actually reading this. Please share your thoughts on DIA! I am genuinely curious to hear what people think of this/whether they trade it/ etc. etc.
Why is this poor thing so neglected? Even YM futures is very neglected with minimal volume.
It is a slow mover, I get it. Its not as fast pace and sexy as SPY. But really, when you're tired and lazy, the slow movement is actually a welcomed relief!
Anyway, please share your thoughts on this!
Thanks everyone and trade safe as always!
I am a stan for DIA. I like it much better than SPY tbh. Nice options that move that reasonably priced and much more stable.
Lately, this has succumbed to similar volatility as SPY (which is curious because it used to always trade independently of SPY) but DIA is still one of my go to stocks if I want an actual day trade and not a scalp.
But let's hopefully stir some interest in this neglected cousin of SPY and do a bit of an analysis.
So, DIA is looking ... well, identical to SPY on the daily.
Maybe a TAD more bearish looking, but I anticipate it to do what SPY does (and thus, ultimately, its a cheaper alternative to trading SPY if you really think about it. Has better option prices, better greeks, etc. so.... yeah, hint hint ;) ).
But seriously, I actually am far more bullish about DIA than I am about SPY from a technical/mathematical perspective.
Let's look at the monthly chart of DIA since its nascence (below):
And now SPY
DIA has also traded extremely stably but honouring a quadratic type relationship over time. You can see this plotted out statistically in the graph below:
DIA's quadratic relationship to time yields an R value of 0.941 whereas SPY's is 0.840. What does that mean? It means that DIA has been growing at a reasonable and expected pace that is fairly linear and stable.
Thus, using this to plot out DIA's natural price currently, we get a price between 326 and 343, with its current price being 349 based on the following formula:
DIA Qudratic price = (Trading Days * -0.037) + (Trading Days Squared * 1.167E-5) + 118.704
(Currently on day 6094)
= 326
So this is fairly natural growth, IMO.
I think if the market does go into full fledged bear market and we see huge dumps. DIA will follow regardless. But if I had to be bullish about any ETF it would definitely be DIA.
Outlook for Tomorrow
As usual, I will give levels for tomorrow.
DIA's range for tomorrow is 345 - 351.
I am looking for a high around 350 to 351 with a bullish break over 349.08 (DIA operates in a much tighter, more narrow range than SPY).
If it turns out to be bearish, I am looking for a break below 348.79 towards 345.
But I am interested. For anyone actually reading this. Please share your thoughts on DIA! I am genuinely curious to hear what people think of this/whether they trade it/ etc. etc.
Why is this poor thing so neglected? Even YM futures is very neglected with minimal volume.
It is a slow mover, I get it. Its not as fast pace and sexy as SPY. But really, when you're tired and lazy, the slow movement is actually a welcomed relief!
Anyway, please share your thoughts on this!
Thanks everyone and trade safe as always!
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