3 Dogs of the Dow to Sell Now
The Dow is rebounding today, but don't underestimate Tuesday's tumble. The index and some of its components are in trouble.
Dogs of the Dow to Sell: International Business Machines (IBM)
Click to Enlarge As the most heavily weighted component of the price-weighted Dow, International Business Machines (IBM) has an outsized influence on the direction of the overall index.
After peaking in early April, IBM has been a drag, dropping more than 6% from its high after reporting weaker-than-expected first quarter revenues on a double-digit decline in its emerging markets business.
I’m looking for a drop back to support near the triple-bottom low near $170 set in October, December and February. That’ll be worth an 8%-plus decline from here.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters, as well as Mirhaydari Capital Management, a registered investment advisory firm.
Article printed from InvestorPlace Media, http://investorplace.com/2014/05/3-dogs-of-the-dow/.
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