Updating the Dow (Top Ticking Energy?)

The editors at DJ have made a few changes to the venerable index: Out are Honeywell (HON) -- which I have owned since the GE (GE) deal fell apart, and Altria (MO) which I sill have a small position in from the late litigation era.

In are Chevron (CVX) and Bank of America (BAC), which I don't own. The charts of the buy and sell signals below are rather interesting.

The adds of Intel (INTC) and Microsoft (MSFT) late in 1999 top ticked the tech boom. Will the Chevron add do the same for energy?

Here's the WSJ:

"Dow Jones & Co. announced that Bank of America Corp. and Chevron Corp. will replace Altria Group Inc. and Honeywell International Inc. in its benchmark Dow Jones Industrial Average effective Feb. 19.

The change is the first in four years and reflects the index's continued shift away from industrial firms and into other sectors such as energy and financial services.

Excluding thinly traded Berkshire Hathaway Inc. (BRK.A), Bank of America and Chevron are the two biggest U.S. companies by market capitalization which currently aren't in the Dow industrials."

Interestingly, I noticed our ratings on both drops were "Neutrals"; the adds were split: BAC was a buy, CVX was a sell.

Dropped:

Honeywell

Altria

Added:

Bank of America

Chevron Texaco

Charts courtesy of FusionIQ

Source:
Bank of America, Chevron Added to Dow Industrials
KEVIN KINGSBURY
February 11, 2008 9:44 a.m.
http://online.wsj.com/article/SB120273890267958813.html