I never bother with the DIAMONDS, DIA, as you get MUCH better option spreads and liquidity in the SPY and IWM, hell, even the NasDogs, but I was going through all 30 DOW stocks, looking for, "IDEA'S", and thought I'd check it out. By the way, Barcharts.com provides a nice way to view all 30 DOW stocks, go to the site,
http://www.barchart.com/, click on "Stocks" on the top bar, then click on "Indices", then click on "Dow Industrials" (OBVIOUSLY, hahahaha!), it takes you to
http://www.barchart.com/stocks/industrials.php, then just above the "components" in the middle of the page, click on "FlipCharts", this opens up a separate window where you can scroll through each chart of all the DOW stocks, you may have to sign up for the free service in order to get the chart parameters you want, I don't know as I'm a member and it always opens up in my templates.
ANYWAY, for the most part, the individual stocks that make up the Index look EXACTLY like the DIA charts above, not the greatest looking things, just my personal opinion of course, not all of them, I have a few idea's below. Before I get into that, you know, I LIKE BarCharts, I like their charts, although I've mentioned some improvements to them, and they actually responded back, although I won't repeat what they said, hahahaha, but I've mentioned this before, in that they are the TYPICAL Wall Street Bull Shit, as evidenced by their free "Chart of the Day" service, where all they ever mention are "Buy Buy Buy's", they never ONCE mention any shorts. Anyway, as an example, when you look on their home page, over on the right side they have the "Market Indices", and under "Today" they have their market opinion, and they say for the S and P 500 it's a 48%, BUY, the NasDogs are a 48%, BUY, and the NYSE is a 32%, BUY, I mean, ?????!!!!! Aren't the SPOO's and the Dogs a 52%, SELL, and the NYSE a 68%, SELL?????!!!!! Hey, so I'm nitpicking, screw it, it's like they are scared to death to mention that horrible word, SELL, it might give Mom and Pop the wrong idea, or some thing!! I mean, far be it from me to say some thing like the Street has a list of DO's and DON'T that they can't violate, like, number one at the top of the list is, "THOU SHALT NOT MENTION THE WORD "SELL""!!!!! By the way, that's the voice of GOD speaking! I'm sorry I even got into it, it's just that it piss's me fricking off!
The main feature of the daily chart, at the bottom, is that if you use a simple RSI 8, over the last six months, through all the chop, we've had seven POSITIVE or NEGATIVE divergences on it, that eventually led to gains or drops, we are currently working off of a NEGATIVE divergence, not particularly great looking. Now, there's nothing on that chart, accept for the divergence, that says SELL, we are above the MA's, which are in a positive configuration, and the MACD has made a higher low and a higher high, and is also coming off a positive divergence against the low made in October. One negative is the MACD is right on the cusp of doing a down side cross, and it will depend on what the news out of Europe is tomorrow, a gap down will trigger a sell signal on it, but if those three magic words come out in the morning, that being "EUROPE", "PROBLEMS", and "SOLVED", all in the same sentence, then we are off to the races to new highs this week.
The good thing about the 60 minute chart at the top, is we are in a triangle, which means we know EXACTLY where we stand on it, a break higher and we probably go, aaaaahhhhh, HIGHER! Another thing is that some of the Elliott waver's are saying this is a Wave 4 triangle, which means we still have one wave higher to go, which would be an ending Wave 5.
The bad things, which are Legion, include the fact that we are in a triangle, and a break lower and we will probably go, aaaaaahhhhhh, LOWER! The MACD is just on a new SELL signal, which will take some time to work off. I can also see a wisp of a POSSIBLE Head and Shoulders formation, with the Neck Line around $116, and a break of it would set a target of $110. The bottom line, when I stand back across the other side of the room, is the whole thing looks like a TOPPING formation, again, just my personal opinion. What this means, of course, is that since I'm always wrong, we more than likely go to Da Stinking MOON!
For some reason they Loooooooooove, Wally World, WMT, it actually showed great RS against the DOW, as it didn't come close to testing the August lows in September, like the DOW did, and then actually went HIGHER in October while the DOW was making it's new lows, very impressive. But I'm not to wild about the latest action, it did a very slight negative divergence on the RSI at the recent high, and if WMT moves up from here it's going to make an even bigger divergence, and the MACD is on a clear sell signal, besides, every one knows you buy Wally World at $40 bucks and ride it to $60.
UTX, you can just use the MMM comments below, pretty much the same pattern, just like most of the DOW stocks it did an awful RSI divergence at the recent highs, and unlike MMM it actually did a little NEGATIVE RSI divergence at the recent low.
Mikey, my god, what an unbelieveable peice of absolute bull crap, just a horrible gappey over lappey type thing, take the JNJ expletives below and just triple them. The only way I would try and trade in would be by going home on the range, try to buy it at $24 and hope to sell it to some sucker at $27.50. Just like a lot of them in the DOW, it did a horrible RSI divergence at the recent high, the RSI has been crashing, and the MACD is on a sell signal, other than that it looks fricking GREAT!
This is one of my favorite companies, MMM, I use their products all the time, especially erasers, hahahaha, anyway, they dumped on meeced earnings, about 7% actually, but the "market" seems to have forgiven them, just like most of them in the DOW it made a horrible RSI divergence at that $82 high, but managed to hold the double bottom at $76, the MACD is above ZERO, but just triggered off a sell signal. I kind of like the candle pattern the last two days, it was down friday with the markets, but just barely, it's holding above those two MA's, which set's up a good stop, which would be under $78. I could easily see this thing going back to $82, if the markets cooperate, and if it can get above that level, it get's into an "Equal Move" scenario, where you take the October low to the October high, $12 bucks, and add it to the double bottom low at $76, and you get a target of $88, which if it goes there it's going to automatically go up to $90, as they always search out whole numbers before turning back.
MCD is the hottest stock in the DOW, probably with good reason, if it goes true to form it will hit "PAR", which is $100. It's doing a BIG RSI divergence at the current double top, and it will have a hard time getting rid of that even if it goes to PAR, the MACD is strong and in no trouble. I was kind of amazed to find out it has the third highest P/E in the DOW, right in back of MRK and KFT, but I guess that's why it's called paying up for it.
KFT, see my comments about JNJ below, and then just DOUBLE the expletives, another one that has a horrible RSI divergence at the recent highs, and is on a new MACD sell signal.
I love this company, JNJ, but I have to say, WHAT AN AWFUL TRADING STOCK!! YUCKO, just horrible, on the left side it went dead ass sideways for three months, and then on the right side it's gone dead ass sideways for the last three months, and that wouldn't be so bad, but just look at all the horrible gaps it gets, up and down, up and down, just an awful trading stock, in my personal opinion. It just did a horrible RSI divergence at the recent high, and is on an MACD sell signal.
The great Inkey looks just awful, the RSI did a horrible divergence at the last high around $25, and has been in literal crash mode since then, and it just kicked off a new MACD sell signal. With the box maker's saying things basically SUCK during their earnings, I have NO IDEA what the deal has been with the rally in Inkey, just one of those miracles I guess.
The great IBM, I'm not EVEN going to comment on the earnings "miss", and then how it "magically" rallied, wad ever, it's on a double top the last week with an RSI divergence, and it's on an MACD super sell signal.
GE looks just awful, it made a horrible RSI divergence at the last high around $17.50, and the RSI has been just dumping, and it's now on an MACD sell signal. I mean, talk about your "MARKET" stocks, GE is just about the "market" stock of "market" stocks, if it's in trouble I see no reason that the Indexes aren't as well.
DIS looks just awful, it made a big divergence on that last RSI high above $36, the RSI is dumping, and it's on a MACD sell signal, just awful looking.
I actually LIKE "AA", despite it being the high cost producer in the sector, it made a negative divergence on the RSI on that last high that popped over the bollinger bands, but on the last drop it made a POSITIVE divergence on that same RSI, the MACD is over the ZERO line, I mean, my personal opinion is that it don't look to bad. I've been screwing around with this thing intraday, and I probably made a mistake by selling out on Friday, but I'm going to look to try and get back into it, if it can get over the recent high I see nothing to stop it from going back to the high it made in August and September, around $13.
