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Today I will review the dividend paying stocks that I did research recommendations on using Dow's Theory. The reason I am selectively choosing these stocks to follow up on is that they, like the Dow Jones Industrial Average, have shown the ability to go to or near the levels that I calculated in earlier postings. For the time being we'll have to assume the price movement in the stocks is merely a coincidence. With that in mind, let's follow up on what I said and what the stocks have done so far.

Air Products and Chemicals (NYSE:APD)

  • On September 29, 2008, I said: "Air Products and Chemicals Inc. is estimated to fall between the $61.84 and $53 levels."
  • On October 6, 2008 APD actually went as low as the $57.69 level before closing at $61.93 the very same day. $57.69 is $0.27 away from the exact middle of the range between $61.84 and $53.

Walgreen (NYSE:WAG)

  • On September 24, 2008, I said: "With all the drama that we're seeing in the stock market I'd assume that the [Walgreen] price will go as far as the $26.91 level."
  • On October 6, 2008, WAG went as low as $26.17, a difference of $0.74 from the estimated low and closed at $27.54 the same day.

Archer Daniels Midland (NYSE:ADM)

  • On September 5, 2008, I said: "The next stop for the 3rd and final support level before total collapse is $20.95."
  • On October 6, 2008 ADM fell to the $16.55 level and closed at $18.37 the same day.

Nucor (NYSE:NUE)

  • On September 3, 2008, I said: "Dow Theory says that NUE may fall to the $38 or $32 level."
  • On October 6, 2008 NUE fell to the $$28.97 level and closed at $33.75 the same day.

Personally, I believe all of these stocks are poised to increase in value from this point until the Dow Jones Industrial Average reaches the first of the three resistance levels at 11,734. After reaching the 11,734 level it is strongly recommended that you consider your exit strategy if you end up purchasing any of these stocks. Good Luck.

Source: Four Stocks that May Go Up After the Temporary Bottom