3 Dow Stocks Hurting The Performance Of Warren Buffett's Holdings
The Dow Jones Industrial Average closed at 17,245.24 on Friday the previous week, up 5.9% so far in the fourth quarter but down 3.4% year-to-date. This average is now 6% below its all-time intraday high of 18,351.36 set on May 19.
The weekly chart is now neutral, ending the week below its five-week modified moving average of 17,281.73 with its 12x3x3 weekly slow stochastic reading at 80.61 up from 76.96 on Nov. 6 and rising into overbought territory above the threshold of 80.00.
Last week three Dow components set new 52-week or multiyear lows, and the three are the third, fourth and fifth largest holdings in Warren Buffett’s Berkshire Hathaway Portfolio, as of August 16.
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American Express (AXP) closed at $71.20 on Friday the previous week, down 4% so far in the fourth quarter and down 23.5% year-to-date. The stock set a 52-week low of $71.10 on Nov. 13. AXP is in bear market territory 26% below the all-time high of $96.24 set on July 1, 2014.
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Courtesy of MetaStock Xenith
American Express’ weekly chart is negative with the stock below its five-week modified moving average of $74.46 and below its 200-week simple moving average of $74.61. The 12x3x3 weekly slow stochastic declined to 29.05 last week down from 35.59 on Nov. 6.
The chart shows the Fibonacci Retracements of the rally from its low of $9.71 set in March 2009 and the all-time high on July 1, 2014. AXP is below the 23.6% retracement of $75.80 with the 38.2% retracement of $63.18.
Strategy Guideline: A monthly value level is $70.95 with a quarterly risky level of $93.44. Annual value levels lag at $60.34 and $58.32.
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IBM closed at $131.75 on Friday the previous week, down 9.1% so far in the fourth quarter and down 17.9% year-to-date and set a multiyear intraday low of $131.75 on Nov. 13. The stock is in bear market territory 39% below its all-time high of $215.86 set on March 14, 2013.
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Courtesy of MetaStock Xenith
IBM’s weekly chart above is negative but overbought with the stock below its five-week modified moving average of $142.58 and well below its 200-week simple moving average of $183.49. The 12x3x3 weekly slow stochastic reading declined to 17.00 last week down from 22.36 on Nov. 6 falling into oversold territory under 20.00.
The chart shows the Fibonacci Retracements of the rally from its low of $69.50 set in Nov. 2008 and the all-time high in March 2013. IBM is below the 50% retracement of $142.80 with the 61.8% retracement of $125.61.
Strategy Guideline: IBM is below monthly and quarterly pivots of $148.97 and $153.64.
Wal-Mart (WMT) had a close of $56.42 on Friday the previous week, down 13% so far in the fourth quarter and down 34.3% year-to-date and set a multiyear intraday low of $56.30 on Nov. 11. The stock is in bear market territory 38% below its all-time high of $90.97 set on Jan. 13.
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Courtesy of MetaStock Xenith
Wal-Mart’s weekly chart is negative but oversold with the stock below its five-week modified moving average of $60.52 and well below its 200-week simple moving average of $73.68. The 12x3x3 weekly slow stochastic reading fell to 9.00 last week down from 11.07 on Nov. 6 becoming even more oversold below the threshold of 20.00.
The uptrend shown connects the lows of Sept. 2007 through the low of August 2011. The trend support for this week is $55.22.
Strategy Guideline: A monthly value level is $54.19 with a quarterly risky level of $76.13.
Disclosure:
Disclosure: I have no positions in more