3 Dow Stocks Hurting The Performance Of Warren Buffett's Holdings

The Dow Jones Industrial Average closed at 17,245.24 on Friday the previous week, up 5.9% so far in the fourth quarter but down 3.4% year-to-date. This average is now 6% below its all-time intraday high of 18,351.36 set on May 19.

The weekly chart is now neutral, ending the week below its five-week modified moving average of 17,281.73 with its 12x3x3 weekly slow stochastic reading at 80.61 up from 76.96 on Nov. 6 and rising into overbought territory above the threshold of 80.00.

Last week three Dow components set new 52-week or multiyear lows, and the three are the third, fourth and fifth largest holdings in Warren Buffett’s Berkshire Hathaway Portfolio, as of August 16.

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American Express (AXPclosed at $71.20 on Friday the previous week, down 4% so far in the fourth quarter and down 23.5% year-to-date. The stock set a 52-week low of $71.10 on Nov. 13. AXP is in bear market territory 26% below the all-time high of $96.24 set on July 1, 2014.

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Courtesy of MetaStock Xenith

American Express’ weekly chart is negative with the stock below its five-week modified moving average of $74.46 and below its 200-week simple moving average of $74.61. The 12x3x3 weekly slow stochastic declined to 29.05 last week down from 35.59 on Nov. 6.

The chart shows the Fibonacci Retracements of the rally from its low of $9.71 set in March 2009 and the all-time high on July 1, 2014. AXP is below the 23.6% retracement of $75.80 with the 38.2% retracement of $63.18.

Strategy Guideline: A monthly value level is $70.95 with a quarterly risky level of $93.44. Annual value levels lag at $60.34 and $58.32.

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IBM closed at $131.75 on Friday the previous week, down 9.1% so far in the fourth quarter and down 17.9% year-to-date and set a multiyear intraday low of $131.75 on Nov. 13. The stock is in bear market territory 39% below its all-time high of $215.86 set on March 14, 2013.

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