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.

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Dogs of the Dow to Sell: International Business Machines (IBM)

052114 IBM 300x247 3 Dogs of the Dow to Sell Now
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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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