Specific Scanning for Dow Stocks at New Trending Highs

Dec 2, 2014: 11:17 AM CST

Sometimes the simplest scans work better than complex methods, especially in a trending market like this.

The thesis is “What is strong tends to get stronger” and these stocks may yet still deliver additional upside gains.

Let’s highlight our “Top Trending” Dow 30 Stocks and note the sectors from which these names emerge.

We’ll start first with our TECHNOLOGY (higher beta) names:

Strong trender Microsoft (MSFT) joins Cisco (CSCO) and Intel (INTC), both of which have experienced a huge burst of buying activity that thrust them straight into the spotlight.

Next, we’ll get a broader mix with a cross-section of RETAIL or consumer-driven companies:

We have a broader mix of retail names that include Disney (DIS), Home Depot (HD), and Coca-Cola (KO).

Note the strong burst of strength – similar to CSCO and INTC – that developed recently in Nike (NKE), Wal-Mart (WMT), and MMM.

Strong stocks can get stronger rapidly, especially in the context of a one-direction price movement (short-squeeze).

Let’s highlight a couple of FINANCIAL related companies in the Dow:

Travelers (TRV) and Visa (V) similarly experienced an end-of-2014 burst of buying activity.

Finally, we’ll end with defensive (Staples) names:

Johnson & Johnson (JNJ), Proctor & Gamble (PG), and United Health Care (UNH) round out the Dow Jones with fresh new 52-week highs.

From a breadth standpoint, these 14 names represent almost half of the Dow Jones 30 stocks which are at (or very near) new highs in an ongoing uptrend.

As always, focus on these “strong getting stronger” stocks if you believe the bull market and uptrend will continue (likely with retracements) as we turn the corner into 2015.

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

2 Comments

2 Responses to “Specific Scanning for Dow Stocks at New Trending Highs”

  1. Payangara Says:

    Trend is the big key if we are to succeed as going against the trend is just going seal up the deal for most newbies as they can’t afford to have risk their account on that. I am currently trading with trend only and that’s because of Analysis and news service by OctaFX broker, they provide me it on daily basis and the accuracy level is just beyond imagination so I can easily follow it and work with the trend only to be successful.

  2. Iyer Says:

    I personally feel this trend is going to continue, but still we got to be careful in how we deal with everything and only then we could get benefits. I always create great money management with OctaFX broker with having 50% bonus on deposit, it’s not just huge in percentage but also have clear policy which allow us to do trading easily since this is use able too, so that really helps with the performance and allows us to succeed.