The Dow fell again today, but with a decline of just 0.43%, the index outperformed the Nasdaq by more than 100 basis points. Below is a look at our trading range screen for the 30 Dow stocks. For each stock, the dot represents where its price is currently trading within its normal range, while the tail end shows where it was trading one week ago. Moves into the red zone are considered overbought, while moves into the green zone are considered oversold. The black vertical “N” line represents each stock’s 50-day moving average, so you can easily see if the stock is trading above or below its 50-day.
As you can see in the screen, most Dow stocks have moved lower within their ranges over the last week. The majority are still above their 50-day moving averages even though more stocks (6) are currently oversold than overbought (4). The four remaining overbought stocks in the Dow are Du Pont (DD), Home Depot (HD), McDonald’s (MCD) and Procter & Gamble (PG). The six stocks that are now oversold are American Express (AXP), Caterpillar (CAT), Cisco (CSCO), Goldman Sachs (GS), Pfizer (PFE) and Exxon Mobil (XOM). Caterpillar has seen the steepest drop within its range over the last week, moving from above its 50-day down into extreme oversold territory.
If you’re looking for Dow stocks that have trended higher over the last week but aren’t yet overbought, there are three: General Electric (GE), Verizon (VZ) and Wal-Mart (WMT).
Year-to-date, AXP, CAT, CVX and WMT are all down more than 20% year-to-date with just a couple of weeks left. GE, HD, MCD and NKE are the four stocks in the index up more than 20% YTD.