Below is our trading range screen for the 30 stocks in the Dow Jones Industrial Average. The screen allows viewers to quickly analyze the recent trading patterns of a basket of stocks. For each stock, the screen shows where it is currently trading within its normal trading range (the dot) along with where it was trading a week ago (the tail). The light red and light green shading represents between one and two standard deviations above and below the stock's 50-day moving average, while the dark red and dark green shading represents between two and three standard deviations above and below the 50-day. Moves into the light shadings are considered overbought or oversold, and moves into the dark shadings represent extreme overbought or oversold levels.
As shown, just two stocks in the Dow are currently oversold (AA and JNJ), while sixteen are overbought. Chevron (CVX), Travelers (TRV), Wal-Mart (WMT), and Exxon (XOM) are in extreme overbought territory and may be due for a pullback or at least some sideways trading action in the near term. At the least, it would probably be smart to hold off on getting long any of these names at these levels. General Electric (GE), Home Depot (HD), and Procter & Gamble (PG) are right on the edge of extreme overbought territory.
For those interested in running a portfolio of stocks through our trading range screen, this feature is available to Bespoke Premium Plus members. Click here to sign up today.
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