The Dow Jones Industrial Average began the trading day up 3.5% so far in 2016. Below is a look at the year-to-date performance of the Dow’s individual members. As shown, Caterpillar (CAT) leads the way with a gain of 19.2%, followed by Wal-Mart (WMT) at 16.7% and 3M (MMM) at 16.6%. Six other Dow stocks are up more than 10% YTD: MRK, JNJ, CSCO, UNH, IBM, and VZ. There are three Dow stocks down more than 10% YTD: Disney (DIS), Nike (NKE), and Boeing (BA). AXP, GS, GE, HD, MCD, and KO are the remaining Dow members in the red for the year. Most of these stocks have fairly horrible chart patterns at the moment.
Below is a look at our custom trading range screen for the Dow 30 members. For each stock, the dot represents where it is currently trading within its range, while the tail end represents where it was trading one week ago. Hence, if the dot is to the right of the tail, the stock has moved higher within its range over the last week. If the dot is to the left of the tail, the stock has moved lower within its range over the last week. The black vertical “N” line in the screen represents each stock’s 50-day moving average. Moves into the red or green zone are considered overbought or oversold.
As you can see, the majority of stocks in the Dow are currently in oversold territory. In fact, eighteen of thirty stocks are oversold, while just one — Apple (AAPL) — is overbought. Given Apple’s downtrend over the last year, this is the first time the stock has been an outlier to the upside in quite a long time.
Stocks like Boeing (BA), General Electric (GE), Home Depot (HD), IBM, 3M (MMM), Travelers (TRV), and United Tech (UTX) have seen massive moves lower within their ranges over the last week. Just eight stocks in the index are above their 50-day moving averages, and all of them, except AAPL, have moved lower within their ranges over the last week.