Below we highlight our trading range screen for the 30 stocks in the Dow Jones Industrial Average. A description of how to read the charts is shown at the bottom of the screen.
For much of this year, the stocks in the Dow have moved in lockstep with each other, with nearly all of them trending in the same direction and moving into overbought or oversold territory all at once. At the moment, however, the 30 Dow stocks are all over the place. Seven Dow stocks are currently overbought and seven are oversold, while the rest are in neutral territory somewhere between one standard deviation above and below their 50-day moving averages. Some names have trended higher over the last week (CSCO, DIS, HPQ, JPM, BAC), while some have trended lower (CAT, IBM, JNJ, MMM, UTX). Money managers have been clamoring for a so-called "stock picker's market" instead of one in which everything moves in the same direction, making it harder to outperform the major indices. Everything has certainly not been moving in the same direction recently.
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