Below is an updated look at our Dow 30 trading range screen. For each stock, the black vertical “N” line is its 50-day moving average, while moves into the red or green zone are considered overbought or oversold. A stock is considered “overbought” when it’s more than one standard deviation above its 50-day moving average, and vice versa for oversold. The dark red and green shaded areas represent between two and three standard deviations above (or below) the 50-DMA.
As shown in the screen, Apple (AAPL) is currently the most overbought stock in the Dow — trading at nearly 3 standard deviations above its 50-day. With a gain of 32% YTD, Apple is having a monster year. Other overbought stocks in the index include Boeing (BA), Home Depot (HD), 3M (MMM), McDonald’s (MCD), and United Tech (UTX).
Dow stocks on the oversold side include General Electric (GE), IBM, Nike (NKE), Pfizer (PFE), Procter & Gamble (PG), and Verizon (VZ). Verizon (VZ) is currently the worst performing Dow stock year-to-date with a decline of 12.65%.
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