“What gets weak tends to get weaker; what gets strong tends to get stronger.”
Which four stocks in the US Dow Jones Industrial Average are “really weak” right now, so weak that they are downtrending and pushing to brand new 52-week lows?
Let’s highlight four companies that are swimming against the broader market’s tide (and may continue to do so).
In alphabetical order, we’ll start with Chevron CVX:
Before we study these stocks today, be sure to view my prior post from June 3rd entitled:
What was weak then – and even before then – is STILL weak today. In the earlier post, I highlighted Chevron (CVX), Wal-Mart (WMT), and Exxon-Mobil (XOM).
Today, I’m highlighting… Chevron (CVX), Wal-Mart (WMT), and Exxon-Mobil (XOM) along with a new ‘weak’ addition of Coca-Cola (KO).
The purpose of this scan is to determine weak stocks likely to get even weaker which means our strategies should favor bearish tactics, NOT bullish reversal strategies (which are tempting).
Nevertheless, Chevron broke support above the $100 level and extended the downtrend, collapsing toward the current $96.00 level.
It’s striking to note that Chevron – a Dow Jones component – has traded 11 weeks consecutively to the downside.
That which is weak tends to get weaker. Continue Reading…