Caterpillar, Chevron And These Two Stocks Lead The Dow This Quarter

The Dow Jones Industrial Average begins the fourth quarter with a gain of 4.9% pulling the average out of correction territory, down 4.1% year-to-date and 6.9% below its all-time intraday high of 18,351.36 set on May 19. All 30 Dow stocks have gains so far in October, led by three stocks that are still in bear market territory and General Electric as the company continues to execute a turnaround story to shed financial assets.

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Here are the daily and weekly charts for the four Dow stocks with the best gains so far in October.

Here’s the daily chart for Caterpillar.

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Courtesy of MetaStock Xenith

Caterpillar (CAT) -1.45% closed at $71.30 on Friday for a gain of 9.1% so far this quarter, still down 22.1% year-to-date and 38.8% below its all-time high of $116.45 set on Feb. 23, 2012. The stock has been under a “death cross” since Oct. 28, 2014 when the 50-day simple moving average fell below its 200-day simple moving average indicating that additional share price weakness lies ahead. The stock closed at $101.16 that day.

The stock set its 52-week low of $62.99 on Sept. 28 and the 9.1% rally since then raises the earnings bar when the company reports quarterly results before the opening bell on Oct. 22. Keep in mind that this company  has business exposure in China.

Here’s the weekly chart for Caterpillar.

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Courtesy of MetaStock Xenith

The weekly chart is negative but oversold with the stock below its five-week modified moving average of $71.85 with its 12x3x3 weekly slow stochastic reading of 14.14 up from 12.05 on Oct. 2 with both readings well below the oversold reading of 20.00. The stock is also below its 200-week simple moving average of $91.28.

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Here’s the daily chart for Chevron.

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Chevron (CVX) +0.00% closed at $89.57 on Friday for a gain of 13.6% so far this quarter, still down 20.2% year-to-date and 33.7% below its all-time high of $135.10 set on July 24, 201. The stock has been under a death cross since Oct. 21, 2014 when the 50-day simple moving average fell below its 200-day simple moving average indicating that additional share price weakness lies ahead. Chevron closed at $115.09 that day.

The stock set its 52-week low of $69.58 on Black Monday, Aug. 24 and the 13.6% rally since then raises the earnings bar when the company reports quarterly results before the opening bell on Oct. 30.

Here’s the weekly chart for Chevron.

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Courtesy of MetaStock Xenith

Chevron’s weekly chart is positive with the stock above its 5-week modified moving average of $82.85 with its 12x3x3 weekly slow stochastic reading rising to 34.81 up from 25.98 on Oct. 2. The stock is below its 200-week simple moving average of $112.23.

Here’s the daily chart for DuPont.

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Courtesy of MetaStock Xenith

DuPont (DDhad a close of $56.18 on Friday for a gain of 16.6% so far this quarter, still down 24% year-to-date and 26.7% below its all-time high of $76.61 set on March 13. The stock has been under a death cross since June 10 when the 50-day simple moving average fell below its 200-day simple moving average indicating that additional share price weakness lies ahead. The stock closed at $65.75 that day.

DuPont set its 52-week low of $47.11 on Sept. 29 slipping below its Black Monday, Aug. 24 low of $48.01. The 16.6% rally since then raises the earnings bar when the company reports quarterly results before the opening bell on Oct. 27.

Here’s the weekly chart for DuPont.

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Courtesy of MetaStock Xenith

The weekly chart will shift to positive at the end of this week on Oct. 17 above its 5-week modified moving average of $51.99 if its 12x3x3 weekly slow stochastic rises above 20.00. The reading rose last week to 15.05 up from 6.70 on Oct. 2. Both readings are below the oversold threshold of 20.00. The stock is just above its 200-week simple moving average of $56.00.

Here’s the daily chart for General Electric.

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Courtesy of MetaStock Xenith

General Electric (GE) +0.00% closed at $28.06 on Friday for a gain of 11.3% so far this quarter, up 11.1% year-to-date and just 2.1% below its 52-week high of $28.68 set on April 10. The stock has been extremely volatile trading back and forth around its 200-day simple moving average all year. The flash crash low of $19.37 on “Black Monday” put the stock briefly in bear market territory, down 32.5% from the 52-week high to that low.

This price range should result in volatility after the company reports quarterly results before the opening bell on Oct. 16

Here’s the weekly chart for General Electric.

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Courtesy of MetaStock Xenith

The weekly chart is positive with the stock above its 5-week modified moving average of $25.81 and with its 12x3x3 weekly slow stochastic rising to 68.07 up from 68.07 on Oct. 2. The stock is also above its 200-week simple moving average of $23.86.

Disclosure: None.

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