IG (Wall St) DOW accuracy?

[Guest ChrisN]

Been using the "Wall St" index over the past few years and occasionally noticed the odd anomaly. The low over the past couple of weeks is a case in point.

IG show it on 6th Aug (midnight 5th) @ 25077 whereas NYSE show 15th Aug @ 25339, Investing.com also 15th @ 25365 and Bloomberg 14th @ 25479.

IG typically say Cash or Futures? I say makes no difference - both show 6th Aug about 9 days before the other providers.

I once got "copyright" as a reason for calling this Wall St and not DJI, Dow or DJIA. Who provides their data feed....the chinese?

Why such a massive discepancy in days? Anyone?

[JamesIG]

An index price quoted by the exchange is a indication of the sum of the constituents within that group - it is not an asset you can trade. For example you can't 'buy a FTSE index'. To get a price you can trade off, IG will take the direct feed from the underlying futures exchange - for example the FTSE futures - and make a fair value adjustment to bring it back to a more accurate spot price. This means stripping away any dividends between now and then, and taking off interest. This means there will always be a discrepancy with the highly publicized index price.

Alternatively you can always trade the Futures price on our platform which is a direct feed from the corresponding Futures exchange

 

[Guest ChrisN]

Thank you JamesIG for your explanation of how IG determine their price charts.

"This means there will always be a discrepancy with the highly publicized index price" ...

Yes that is also noted but your company "interpretation" has the low 9 days before the other outlets. However you want to spin (explain) it. That makes it incredibly difficult to ascertain what a real low is.....is it the one you show or the one the others show? It also, at least to me, appears that best practise would be served if the resulting price chart reflects the index it purports to follow/promote.

EWT users ( I follow a US analyst) will know the frustration. His DOW chart shows a different low....and therefore a different count.

Tongue in cheek.....so when was the recent low in the past two weeks?

[Kodiak]

The low 6 Aug was out of hours when cash was closed for the day

and there is also dividend to adjust for if comparing future and cash

Personally i prefer the future for the TA then i also get some action in  Asia and Europe,  its all part of the same market more or less (money never sleeps)

https://www.barchart.com/futures/quotes/YMU19/interactive-chart