Six Dow Jones Stocks at Fresh New 52 Week Lows

Aug 6, 2015: 12:49 PM CST

Not all is well with the Dow Jones Industrial Average.

While some stocks are getting attention as they continue bullishly to new all-time highs, other stocks are quietly breaking to new 52-week lows during new downtrends.

Let’s note six of these stocks and what opportunities may be available in these downtrenders.

First, take a moment to read “What Two Breadth Charts are Saying about the Strength of the Current S&P 500.

We can see that Breadth – the number of stocks at new highs minus those at new lows – is deteriorating.

The Dow Jones itself (30 stocks) is showing relative weakness to the broader S&P 500 Index.

Just take a look at these six names – scanned from FinViz.com – with stocks breaking to new lows.

Two oil stocks – Chevron (CVX) and Exxon-Mobil (XOM) make sense logically, given the ongoing breakdown and downtrend extending in oil.

However, the other names span diverse sectors beyond energy.

Other downtrending and weak stocks include American Express (AXP, Caterpillar (CAT), Dupont (DD), and Proctor and Gamble (PG).

Here’s a different – slightly longer trend – view of these same names:

We often use simple scans like this to find “strong stocks getting stronger” and in this case, “weak stocks getting weaker” for candidates to trade.

We prefer to trade in the direction of an ongoing trend instead of trying to pinpoint that elusive reversal price.

Pro-trend trades include retracements (like flags) or breakouts.

Note two examples from American Express (AXP) and Proctor and Gamble (PG).

Both stocks “looked like” they were forming a reversal up off support, only to see price recently collapse lower recently to continue the downtrend.

Take a moment to view these stocks, use your own indicators (or strategies), and dig a bit beneath the bull market to see what’s going on in weak stocks behind the scenes.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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1 Comment

One Response to “Six Dow Jones Stocks at Fresh New 52 Week Lows”

  1. Kiye Says:

    Frankly speaking I don’t prefer it all too much to be trading in these, it’s way too risky and investment requirement is way too high for a normal trader to be comfortable in any way at all, but it’s nice to know the trend. Right now I am doing currency trading with OctaFX broker, it’s a very fine company with having solid facilities which includes low spread of 0.2 pips for all major pairs plus have got smooth cTrader platform which is especially develop for ECN trading.