With President Trump and others exclaiming about the new all-time highs in the Dow Jones Industrial Average, it might be easy to miss the failure of several big-name components to make their individual new all-time highs.
From a technical analysis viewpoint, this could be considered a sign of relative weakness: a “non-confirmation.” When all of the cylinders are not firing at once, that can be a problem for investors who might be expecting continued strength based on a simple reading of just the one index.
Here are 5 stocks in the DJIA that failed to get there this week.
The huge oil company peaked in September, 2018 at 84 and has since been unable to re-take that level. Like most other stocks, Exxon-Mobil blasted off that late December, 2018 trough and rallied strongly into April and May of this year — but made it back to just 82. No new all-time high for the company which now trades at 77.
The manufacturer of the most famous scotch tape (and other products) peaked out all the way back in January, 2018 at just under 250. The stock hit a late December, 2018 low of 175 and then rallied into spring 2019 back to almost 220.
The extraordinary selling that followed took 3M down to 160 by late May. It has since rallied to 173 — but, clearly, has failed to join the Dow Jones Industrial Average to new all-time highs.
DOW peaked at the beginning of April at 60 and has been in what amounts to a downtrend since then. Off of the late May low of 47 it managed to rally back to 52 by June.
Here in mid-July, the stock has backed off to 49 — again, a major component of the index is at odds with the “all-time high” headlines we saw at the end of the week.
This is the one that surprises me more than any of the others that failed to keep up with the larger index. Apple is a big name, considered a stock market leader for years now — and yet when the Dow Jones Industrial Average puts in a new all time high, it’s lagging.
From its own all-time peak of 230 in the fall of 2018 to the late December low of 140, the stock rallied back to 215 in April and then dropped back to 170 by June. The rally up to 203 this week is a weak move relative to the larger DJIA.
After peaking at 440 in February of this year, Boeing ran into some serious selling in early March — look at that red volume bar sticking out near the bottom of the chart. Price gapped lower, an unusual price chart look for such a major name.
After bottoming at 330 in late May, the stock is back up to 365. It’s another component failing to join the index in the media celebration of “all-time highs” this week.
It may be the case that these stocks catch up and even out perform at some point. Right now, though, you’d be looking through rose colored glasses if all you saw was the Dow Jones Industrial Average at all time highs. Not everything is in gear here if you look closely.
Stats courtesy of FinViz.com.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.
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