Disclosure: I hold no positions in Boeing, Cisco Systems, 3M Company or Merck.
Boeing (BA), Cisco Systems (CSCO), 3M Company (MMM) and Merck (MRK) are the only components of the Dow Jones Industrial Average to set all-time or multiyear intraday highs on Friday. The Dow set its all-time intraday high of 20,840.70 on Feb. 23.
Seven other Dow components set all-time or multiyear intraday highs last week helping the average to a series of all-time highs. Positive reactions to earnings from Home Depot and Wal-Mart last week also helped propel new highs.
The Dow 30 closed Friday at 20,821.76, just below the all-time intraday high and is up 5.4% year-to-date and in bull market territory, 34.8% above its Jan. 20, 2016 low of 15,450.56. The four components covered today have an aggregate gain of 9% year-to-date and Boeing and Cisco Systems are two of the new members of the 2017 “Dogs of the Dow”.
The weekly chart for the Dow remains positive but overbought with the average above its five-week modified moving average of 20,186.68 and well above its 200-week simple moving average of 17,192.26. The 12x3x3 weekly slow stochastic reading ended last week at 97.02 up from 96.23 on Feb. 17, moving further above the overbought threshold of 80.00. The horizontal line shows the downside risk should the Dow decline to its pre-crash 2008 high of 14,198, set in October 2007.
Courtesy of MetaStock Xenith
The Dow has a weekly value level of 20,766 with a semiannual risky level of 20,893. My monthly and quarterly value levels are 19,952 and 18,300, respectively, with annual and semiannual risky levels of 22,042 and 22,148, respectively. My annual value level lags at 15,111.
Courtesy of MetaStock Xenith
The weekly chart for Boeing is positive but overbought with the stock above its five-week modified moving average of $165.58 and above its 200-week simple moving average of $132.53. The stock’s 12x3x3 weekly slow stochastic reading rose to 88.49 last week up from 86.56 on Feb. 17, moving further above the overbought threshold of 80.00.
Investors looking to buy Boeing should do so on weakness to $162.79 and $150.90, which are monthly and quarterly value levels, respectively. Investors looking to reduce holdings should could have done so at the close on Friday, which was a test of my annual pivot of $177.45. Investors looking to sell on additional strength should do so at $195.90, which is my semiannual risky level.
Cisco Systems closed Friday at $34.32, up 13.6% year-to-date and up 52.8% from its Feb. 11, 2016 low of $22.46. The set its multiyear intraday high of $34.32 on Feb. 24. Shares have been above a “golden cross” on its daily chart since April 15 when the stock closed at $27.90.
Courtesy of MetaStock Xenith
The weekly chart for Cisco is positive but overbought with the stock above its five-week modified moving average of $31.95 and above its 200-week simple moving average of $26.52. The stock’s 12x3x3 weekly slow stochastic reading rose to 77.78 last week up from 68.63 on Feb. 17.
Investors looking to buy Cisco should do so on weakness to $31.96 and $29.45, which are monthly and quarterly value levels, respectively. Investors looking to reduce holdings should begin doing so my semiannual pivot of $34.39, which is just above Friday’s close. My annual pivot of $32.53 should be a magnet. Investors looking to sell on additional strength should wait until another risky level is generated, perhaps in March.
3M Company closed Friday at $187.41, up 5% year-to-date and up 50.4% from its Jan. 20, 2016 low of $124.64. It set its all-time intraday high of $188.41 on Feb. 24. Shares have been above a “golden cross” on its daily chart since the end of 2016 when 3M closed at $178.57.
Courtesy of MetaStock Xenith
The weekly chart for 3M is positive but overbought with the stock above its five-week modified moving average of $180.11 and above its 200-week simple moving average of $150.45. 3M’s 12x3x3 weekly slow stochastic reading rose to 82.43 last week, up from 77.36 on Feb. 17, moving back above the overbought threshold of 80.00.
Investors looking to buy 3M should do so on weakness to $181.50 and $166.08, which are monthly and quarterly value levels, respectively. Investors looking to sell on strength to $199.33 and $217.01, which are annual and semiannual risky levels, respectively.
Merck closed Friday at $66.16, up 12.4% year-to-date and up 37.9% from its Feb. 8, 2016 low of $47.97. The stock set its multiyear intraday high of $66.16 on Feb. 24. Shares have been above a “golden cross” on its daily chart since April 27 when Merck closed at $56.31.
Courtesy of MetaStock Xenith
The weekly chart for Merck is positive with the stock above its five-week modified moving average of $63.64 and above its 200-week simple moving average of $55.69. The stock’s 12x3x3 weekly slow stochastic reading rose to 78.63 last week up from 71.13 on Feb. 17.
Investors looking to buy Merck should do so on weakness to $55.94, which is my quarterly value level. I show monthly and annual pivots of $64.68 and $64.85, respectively. Investors looking to reduce holdings should do so on strength at $69.34, which is my semiannual risky level.
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