Dow 30 Overbought / Oversold Edition

Below we highlight one of our most closely followed customizable products. This overbought / oversold report on the thirty members of the Dow Jones Industrial Average highlights trading parameters based on the fifty day moving average. Alcoa (AA), American Express (AXP), and Caterpillar (CAT) are examples of stocks that are currently overbought. AT&T (T), Coke (KO), and IBM are examples of stocks that in the middle of their trading ranges, and 3M (MMM), Boeing (BA), and Kraft (KFT) are at their theoretical highs.

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Comments

[bill blattner:]

I see the game playing is alive and well.
One has to understand how to run a business before making any comments about them.
I was president of our company for over thirty years before I turned it over to my son.
Its private, and we do over a BILLION DOLLARS a year and are very profitable.
So I know what I am talking about.

May 10 07:50 AM

[DRH:]

Would be nice if the author could explain the data posted a little better.

May 10 09:18 AM

[Smooge:]

Of course those are based upon fundamentals which traders don't care that much about. It's market sediment and speculation is why they are overbought. That can change in seconds. JMO

May 10 12:36 PM

[realold:]

I think that you have hit upon a magnificient new descripition: "market sediment". Is that what we are seeing now, dead stocks falling out and to the bottom? Then, piling up on top of each other so that each new death settles at a higher level on the heap? Excellent. It explains higher prices for dead stocks. Thanks.


On May 10 12:36 PM Smooge wrote:

> Of course those are based upon fundamentals which traders don't care
> that much about. It's market sediment and speculation is why they
> are overbought. That can change in seconds. JMO

May 10 03:29 PM

[toomuchgas:]

Stocks are probably going to tread water for a while, but with money market yields close to zero, fundamentally most dividend paying stocks are cheap. I'm long until interest rates start to rise.

May 10 08:42 PM

[Methos:]

These look to be based on standard overbought indicators (stochastic, bollinger, etc.) Since the overall indexes have shown the same signals for a while now, I would not put too much into it. As all indicators are pointing to a bearish reversal, I do not expect the rally to continue without further political posturing.


On May 10 09:18 AM DRH wrote:

> Would be nice if the author could explain the data posted a little
> better.

May 10 09:27 PM

[Smooge:]

Do you always act like that when you see a typo or are you above imperfections?

On May 10 03:29 PM realold wrote:

> I think that you have hit upon a magnificient new descripition: "market
> sediment". Is that what we are seeing now, dead stocks falling out
> and to the bottom? Then, piling up on top of each other so that each
> new death settles at a higher level on the heap? Excellent. It explains
> higher prices for dead stocks. Thanks.

May 10 11:21 PM

[BlueOkie:]

How exactly did you come up with target price? A higher or lower target price makes all the difference in the world. I own several of the DOW and believe your targets are set too low.

May 11 07:05 AM

[Windwood Tr...:]

Looks to me like the range may be the Bollinger Bands with the 50 day MA the midpoint and the overbought/sold the stochastic divergence points. I would like to know if volume/price movement is a factor. If so than the graphics would have definite trading value.
How about it- Like a few of the others can you clarify your graph data?
Thanks-

May 11 07:38 AM

[RN:]

I'm not realold, but I didn't catch that it was a typo. I thought it was a marvellous new concept, too. Do you always act like that when you're praised, Smooge? :)


On May 10 11:21 PM Smooge wrote:

> Do you always act like that when you see a typo or are you above
> imperfections?
>
> On May 10 03:29 PM realold wrote:

May 11 09:04 AM

[whaddyamean?:]

"Market sediment" - - I love it!

May 11 11:54 AM

[Larrysyr:]

Smooge,

We all make typos, of course. Yours just gave realold an idea for a humorous comment. I'm sure it wasn't meant as a personal attack. You'll recognize those right away because they really aren't funny.


On May 10 11:21 PM Smooge wrote:

> Do you always act like that when you see a typo or are you above
> imperfections?
>
> On May 10 03:29 PM realold wrote:

May 11 03:33 PM

[inflation:]

Being a customizable product where would one pick one of these up?

May 11 06:55 PM

[H.J. Huneycutt:]

This is a completely useless article --- it's just some bars and some completely meaningless metrics. There are absolutely no explanations.

In fact, this article appears to be an advertisement for the author's product ("one of our most closely followed customizable products"). Not sure why anyone would be willing to waste their money on this; any moron can look at a chart and see whether a stock's being going up or down over a certain time frame. The author's comment that many of these stocks are trading near their "theoretical highs" exposes how completely useless most technical analysis is.

May 12 10:40 AM

[Flying Bird:]

Huney:

I would disagree with you completely about your conclusions on technical analysis. Notice Boeing for example, peaked on 5/8/09 which directly corresponds to the author's theoretical high. It seems to me that this is a useful tool.


On May 12 10:40 AM H.J. Huneycutt wrote:

> This is a completely useless article --- it's just some bars and
> some completely meaningless metrics. There are absolutely no explanations.
>
>
> In fact, this article appears to be an advertisement for the author's
> product ("one of our most closely followed customizable products").
> Not sure why anyone would be willing to waste their money on this;
> any moron can look at a chart and see whether a stock's being going
> up or down over a certain time frame. The author's comment that many
> of these stocks are trading near their "theoretical highs" exposes
> how completely useless most technical analysis is.

May 14 09:05 AM