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Why else buy the Diamon Trust (DIA)?

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Posted by lae2 on December 11, 2008 at 15:26:24:

The Diamond Trust correlates so strongly with the DOW that it might as well be treated as the DOW, but on a different numerical scale. I happen to really like the micro-charts that Ameritrade provides on the account balances page. In fact, I can quickly do my daily TA using these charts.

The problem is that the micro-charts only plot stocks currently held. One solution is to hold minor positions in your watch list. Additionally, in my case, I base my entries and exits for individual stocks on the DOW average. A position in DIA provides equivalent of a DOW micro-chart. This may strike you as not the best reason to maintain a position but having a position in DIA saves me time on TA.


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