Fresh New Lows for the Four Weakest Stocks in the Dow

As stocks threaten to trade lower, let’s highlight the four weak (downtrending) Dow Jones stocks at fresh new trending lows.

These stocks remind us why it’s better to trade WITH a trend as opposed to fighting it (playing reversals).

In addition, these serve as possible candidates for short-selling retracements or additional breakdowns should these strong downtrends (relative weakness) continue.

Here are the “worst” four downtrending stocks in the Dow Jones as we close out 2015:

American Express (AXP) is down roughly 24.00%; Caterpillar (CAT) is down 25%; and Wal-Mart (WMT) is the weakest, declining 29.00%.

While IBM is down 12%, I included it in the “fresh new lows” list above to focus on the trend action.

Other stocks which have declined slightly more than 12% are actually bouncing strongly off their 2015 lows, unlike these four candidates.

Let’s zoom-in quickly on these four weak stocks and highlight their 2015 all-year downtrends:American Express (AXP):

Caterpillar (CAT):

IBM:

Wal-Mart Stores (WMT):

Again, take a look at these candidates, remind yourself that “Trends, Once Established, have Greater Odds of Continuing than of Reversing,” and consider trading opportunities should these trends indeed continue.

To brush up on Trends and how to Trade Retracements, review our new “Perfect Pullback” trading bundle.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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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).