Below we highlight our trading range screen for the 30 stocks in the Dow Jones Industrial Average. The screen shows where each stock is currently trading within its normal trading range. While there were a few overbought stocks in the index as of last week, there are absolutely none now after the sharp selloff we've seen here in the U.S. and abroad over the past eight days.
In fact, a whopping 23 of the 30 Dow stocks are now trading in oversold territory. It has been quite a long time since this many stocks were oversold. And of the 23 oversold stocks, 15 are in extreme oversold territory, or more than two standard deviations below their 50-days. Johnson & Johnson (JNJ), Merck (MRK), and Pfizer (PFE) are the most oversold, with Alcoa (AA), Boeing (BA), General Electric (GE), and United Tech (UTX) not far behind. Just four Dow stocks remain above their 50-day moving averages -- IBM (IBM), Coca-Cola (KO), McDonald's (MCD), and Microsoft (MSFT). There's no way around it, it's ugly out there.
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