The Dow Jones Industrial Average has had a rather rough 2014.
The year began with a huge January selloff in the DJIA that sent the blue chip index below both its short-term, 50-day moving average as well as its long-term, 200-day MA.
In February, Dow Jones stocks staged a most-impressive rebound, vaulting back up above key trendlines. March brought about another bout of selling in the Dow that once again took the DJIA below the 50-day MA. That decline was quickly followed by a rebound in Dow Jones stocks back up above short-term support. So far in April, it has been a case of déjà vu for the DJIA, with a decline early in the month that once again dropped Dow Jones stocks below the 50-day MA, then back up above the 50-day.
Given all of the volatility this year, you might be surprised to learn that the DJIA now is just slightly in the red for the year, down 0.45% through this morning’s open.
Interestingly, of the 30 Dow Jones stocks that make up the index, 16 are currently in the red for 2014 while 14 are positive year-to-date. That’s about as balanced as it gets.
Perhaps most interestingly are the companies that have put in the worst performance so far in 2014. That’s because dwelling at the cellar of the DJIA are several stocks that have traditionally been strong winners. Yet while these Dow components are down in 2014, that doesn’t mean you should shun them.
In fact, now is the time to jump on these three down-but-not-out Dow Jones stocks.