The 8 ‘Dogs Of The Dow’ Lost Ground In August


Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on August 16, 2017 in New York. Wall Street stocks rose early Wednesday ahead of the release of Federal Reserve meeting minutes expected to shed light on the prospects of another interest rate increase in 2017. (BRYAN R. SMITH/AFP/Getty Images)


The Dow Jones Industrial Average begins September up 11.3% year to date after setting an all-time intraday high of 22,179.11 on Aug. 8. This gave investors the opportunity to reduce holdings vs. my annual, semiannual and monthly risky levels of 22,041, 22,127 and 22,554, respectively. This weeks risky level is 22,242.

The eight Dogs of the Dow had an aggregate gain of 3.8% year to date, down from 4% at the end of July. The top dog remains Boeing with a Dow beating gain of 54.4% year to date. The biggest Dow loser is General Electric (GE) down 20.4% year to date. GE is not one of the Dogs, but will be in 2018. The weakest 2017 dogs are Exxon Mobil, IBM and Verizon with declines of 15.2%, 13.2% and 10.2% year to date, respectively. IBM is in bear market territory 21.2% below its post-election high, while Exxon Mobil and Verizon are in correction territory at 17.9% and 12.6% below their post-election highs.


The Year-To-Date Scorecard For The Eight Dogs Of The Dow For 2017

Global Market Consultants

Scorecard For The Dogs Of The Dow

Boeing had a close of $240.33 on Sept. 1, up 54.4% year to date, and in bull market territory 70.1% above its post-election low of $141.29 set on Nov. 8. The stock ended 2016 with a dividend yield of 3.65%, and its now only 2.61%, so it should no longer be bought for its dividend.


Courtesy of MetaStock Xenith

Weekly Chart For Boeing

Courtesy of MetaStock Xenith

The weekly chart for Boeing is positive but overbought with the stock above its five-week modified moving average of $227.69, and above its 200-week simple moving average of $144.85, which is the reversion to the mean last tested during the week of Feb. 26, 2016 when the average was $115.75. The 12x3x3 weekly slow stochastic reading ended last week at 86.53 above the overbought threshold of 80.00.


Buy weakness to my semiannual and annual value levels of $194.99 and $177.45, respectively. Sell strength to my monthly risky level of $247.10.

Cisco Systems had a close of $32.30 on Sept. 1, up 6.9% year to date and 6.6% below its post-election high of $34.60 set on May 8. The stock ended 2016 with a dividend yield of 3.84%, and its now 3.78%.

Courtesy of MetaStock Xenith


Weekly Chart For Cisco Systems

Courtesy of MetaStock Xenith

The weekly chart for Cisco is positive with the stock above its five-week modified moving average of $31.59. The stock is above its 200-week simple moving average of $27.66, which is the reversion to the mean last tested during the week of Feb. 12, 2016 when the average was $23,61. The 12x3x3 weekly slow stochastic reading ended last week at 35.83 up from 30.15 on Aug. 25.

Buy weakness to its 200-week simple moving average of $27.66. My quarterly and annual pivots are $32.30 and $32.53, respectively. Sell strength to my monthly and semiannual risky levels of $34.55 and $35.23, respectively.

Chevron had a close of $108.76 on Sept. 1, down 7.6% year to date, and 8.6% below its post-election high of $118.99 set on Dec. 12. The stock set its post-election low of $102.55 on June 7. The stock ended 2016 with a dividend yield of 3.67%, and its now cheap at 3.97%. Consider Chevron as a dividend option instead of utilities.

Courtesy of MetaStock Xenith

Weekly Chart For Chevron

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