Market Looks Toppy - 7 Dow Stocks Worth Owning and a Lot that Aren't

Adam Sarhan  |

The market is getting weaker, not stronger. We are continuing to see more and more deterioration occurring as the major indices look toppy up here. The tape continues to break down. The bull market is over 6.5 years old and that is considered an aging bull by normal historical measures. Notwithstanding more easy money from the Fed and other central banks, a break of support will add to the misery.

A Look At The Dow

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The Dow Jones Industrial Average is comprised of 30 blue chip stocks. The Dow is down for the year and continues to under-perform its peers. The reason is simple: Most stocks in the Dow are not acting well and more continue to roll over. Right now, there are only 7 strong acting stocks in the Dow and 23 that are either range bound or are in a clear downtrend. That’s not a bullish equation.

There Are Only 7 stocks in the Dow That Are In Good Technical Shape

  1. Home Depot Inc. ($HD) - Remains perched below 52-week highs
  2. JPMorgan Chase & Co. ($JPM) – Needs to breakout
  3. McDonald's Corporation ($MCD) – At the higher end of range- needs to breakout above $101.10
  4. Nike Inc. ($NKE) – Extended remains a very strong stock
  5. Pfizer ($PFE) – Negating latest breakout but remains strong on a relative basis
  6. UnitedHealth Group Inc ($UNH) – Looks good as it trades just below resistance of its multi-month trading range
  7. Visa Inc. ($V) - Very strong and remains extended

23 Stocks Are Either Range Bound Or Not Acting Well:

  1. Apple, Inc. ($AAPL)
  2. American Express Company ($AXP)
  3. Boeing Co ($BA)
  4. Caterpillar ($CAT)
  5. Cisco Systems Inc. ($CSCO)
  6. Chevron Corporation ($CVX)
  7. E I Du Pont De Nemours And Co ($DD)
  8. Walt Disney Co ($DIS)
  9. General Electric Company ($GE)
  10. Goldman Sachs Group Inc ($GS)
  11. The Coca-Cola Co ($KO)
  12. IBM ($IBM)
  13. Intel Corporation ($INTC)
  14. Johnson and Johnson ($JNJ)
  15. 3M ($MMM)
  16. Merck & Co., Inc.  ($MRK)
  17. Microsoft Corporation ($MSFT)
  18. Nike Inc. ($NKE)
  19. Procter & Gample Inc. ($PG)
  20. United Technologies Corporation ($UTX)
  21. Verizon Communications Inc. ($VZ)
  22. Wal-Mart Stores, Inc. ($WMT)
  23. Exxon Mobil Corporation ($XOM)

Bottom Line:

The writing is on the wall for a classic topping process. If support breaks, odds favor lower prices will follow. Conversely, if the bulls show up (enter bullish catalyst that emerges) we are only a few percentage points below record highs and could easily breakout of this year-long trading range. We remain open for any outcome, but the evidence is suggesting the market is getting weaker, not stronger. If you want more, consider joining FindLeadingStocks.com

 

If you want exact entry and exit points in leading stocks, or access more of Adam's commentary/thoughts on the market. Consider joining SarhanCapital.com.

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Companies

Symbol Name Price Change % Volume
MMM 3M Company 205.69 1.09 0.53 1,709,730 Trade
UNH UnitedHealth Group Incorporated (DE) 261.69 -0.71 -0.27 1,559,266 Trade
PG Procter & Gamble Company (The) 83.90 0.26 0.31 8,534,868 Trade
GE General Electric Company 12.63 0.33 2.68 57,947,557 Trade
CVX Chevron Corporation 117.94 0.19 0.16 4,875,808 Trade
JNJ Johnson & Johnson 135.35 -1.53 -1.12 5,832,414 Trade
WMT Walmart Inc. 96.08 0.08 0.08 10,531,269 Trade
INTC Intel Corporation 47.62 1.12 2.41 19,254,336 Trade
IBM International Business Machines Corporation 145.97 -0.54 -0.37 3,106,876 Trade
AAPL Apple Inc. 215.04 -0.42 -0.19 26,159,755 Trade
JPM JP Morgan Chase & Co. 115.32 0.70 0.61 10,976,680 Trade
AXP American Express Company 104.81 0.98 0.94 3,218,610 Trade
UTX United Technologies Corporation 135.98 0.84 0.62 2,235,377 Trade
V Visa Inc. 140.04 -0.90 -0.64 6,854,347 Trade
CSCO Cisco Systems Inc. 45.78 -0.44 -0.95 18,617,346 Trade
DIS The Walt Disney Company 112.39 0.40 0.36 4,770,448 Trade
GS Goldman Sachs Group Inc. (The) 238.65 2.87 1.22 2,437,333 Trade
VZ Verizon Communications Inc. 54.91 0.26 0.48 11,961,204 Trade
NKE Nike Inc. 82.95 0.77 0.94 6,337,324 Trade
MCD McDonald's Corporation 161.04 -0.64 -0.40 1,920,897 Trade
HD Home Depot Inc. (The) 200.23 2.30 1.16 4,124,597 Trade
XOM Exxon Mobil Corporation 78.83 0.02 0.03 9,192,229 Trade
PFE Pfizer Inc. 42.16 -0.17 -0.40 17,678,607 Trade
BA The Boeing Company 353.77 3.03 0.86 2,967,175 Trade
MRK Merck & Company Inc. (new) 69.17 -1.00 -1.43 9,815,008 Trade
KO Coca-Cola Company (The) 46.22 -0.51 -1.09 13,986,293 Trade
CAT Caterpillar Inc. 139.99 1.32 0.95 3,021,442 Trade
MSFT Microsoft Corporation 105.98 -0.89 -0.83 22,881,861 Trade

Comments

Emerging Growth

IMV Inc.

Immunovaccine Inc is clinical stage biopharmaceutical company. The Company develops products based on its proprietary vaccine enhancement platform in T cell activating therapies for cancer.