Below is a look at our Dow 30 trading range screen as we begin a new week. For each stock, the dot represents where it’s currently trading within its normal “trading range” (see bottom of screen for details), while the tail end represents where it was trading one week ago. The black vertical “N” line represents each stock’s 50-day moving average.
After three weeks of declines for the market, ten Dow stocks are now oversold while just two are overbought. A week ago there were ten overbought stocks and six oversold.
Apple (AAPL), Caterpillar (CAT), General Electric (GE) and Wal-Mart (WMT) are at the most extreme oversold levels, while Cisco (CSCO) and Intel (INTC) are just on the cusp of extreme territory (more than two standard deviations below 50-DMA). The two overbought stocks are Johnson & Johnson (JNJ) and Exxon Mobil (XOM). It has been a while since an Energy stock like XOM has stood out for its strength!
Looking at year-to-date returns, Apple enters the week as the worst performing Dow stock of 2016 (-14%). Goldman Sachs (GS) and Intel (INTC) aren’t far behind, though, with declines of 13%+. Exxon Mobil (XOM) and Chevron (CVX) are the two top performing Dow stocks year-to-date.