DJIA Member Trading Ranges

by: Bespoke Investment Group

The chart below summarizes the current trading ranges for the Dow Jones Industrial Average (NYSEARCA:DIA) and its thirty components, and is a really convenient way for investors to get a quick read of which stocks are driving the market higher and which are lagging. For the index and each stock we provide the current Overbought (OB)/Oversold (OS) reading of the stock as well as its reading one week ago (based on standard deviations above or below the 50-day moving average). Next to that we also graphically illustrate where the stock currently is relative to its trading range (black circle) as well as the reading one weak ago (end of black line). When the circle is the in the red areas it indicates that the stock is overbought, while readings in the green shaded areas indicate that the stock is oversold. Finally, the chart to the right is a graphical representation of the daily OB/OS readings over the last year. For each chart we also include black circles which represent the most overbought and oversold readings over the last year.

The chart below (click here for pdf and further explanation) is sorted from the most overbought DJIA components on the top to the most oversold on the bottom. As shown, McDonald's (NYSE:MCD) is the most overbought stock on the list, followed by Wal-Mart (NYSE:WMT), Home Depot (NYSE:HD), and Hewlett-Packard (NYSE:HPQ). HPQ is the only stock of the four that was not overbought one week ago. On the other end fo the spectrum, there are currently no oversold stocks as Bank of America (NYSE:BAC), Coke (NYSE:KO), and Alcoa (NYSE:AA) are all trading at neutral levels. Finally, looking at the charts to the right, the DJIA is currently near its most overbought levels of the last year, which were just hit in the last several trading days. Within the index, other stocks that have just recently traded to their most overbought levels in the last year include HPQ, Travelers (NYSE:TRV), Merck (NYSE:MRK), Cisco (NASDAQ:CSCO), and General Electric (NYSE:GE).

(Click chart to expand)