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Market Mover Report

|Includes: IBM, IWM, PFE, PowerShares QQQ Trust ETF (QQQ), SPY, T
The Dow Jones Industrial Average (DJIA) continues to be the leading index in the stock market. Since the March 2009 stock market low the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) , and the iShares Russell 2000 Index (ETF) (NYSE:IWM), have lead the markets higher. However, the Dow Jones Industrial Average has taken over as the leading market index beginning around January 18, 2011. This week we shall focus on three different stocks that are in the Dow Jones Industrial Average Index. It is very important for investors and traders to realize that the Dow Jones Industrial Average is made up of just 30 stocks that are price cap weighted. All of the other indexes such as the NASDAQ Composite, S&P 500 Index, and the Russel 2000, are all market cap weighted. Therefore, a stock that is highly priced in the DJIA holds much more weight in the index than a stock that is low priced. For example, International Business Machines Corp. (NYSE:IBM) which is priced at $164.00 a share is much more important for the index than AT&T Inc. (NYSE:T) which is priced at $28.00 a share.

The first stock that we shall examine is International Business Machines Corp. (NYSE:IBM). Obviously this is now the most important stock in the DJIA because of its high price. IBM has rallied higher by over 40.0 percent since the May 6th, 2010 flash crash low. The stock will have weekly chart resistance around the $170.00 level. Should IBM continue to break through that level traders and investors should then look at the $176.00 level as the next resistance area. IBM is trading at new all times highs and it is always very difficult to find when a stock will peak out or hit important resistance.
These levels should be watched closely.




Pfizer Inc. (NYSE:PFE) is a leading pharmaceutical company with a large variety of marketed drugs. This stock has surged higher since July 1, 2010 when the stock was trading as low as $14.00 a share. Since that time the Pfizer stock is up by nearly 40.0 percent. The stock should have weekly chart resistance around the $20.00 area. Should Pfizer stock trade above that level the next weekly resistance area will be around the $22.00 level. Both levels could see pullbacks in the Pfizer stock.




3M Company (NYSE:MMM) is one of the most diversified industrial goods companies in the world. 3M Co. makes everything from tape to health care products. The stock made a high on October 25, 2010 at $91.49 a share. Since that time the stock has failed to recapture that high despite the Dow Jones Industrial Average making a new two year high. Short term traders should watch the current bearish pattern that has formed on the daily chart. The stock will have daily chart support around the $86.00 level. The next weekly support level will be around the $84.00 level. There will be more weekly chart support around the $81.00 level. Should the current daily chart bearish pattern fail to play out to the downside 3M stock will have daily chart resistance at the $90.00 area.



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