Dissecting The Dow For General Market Direction: MCD, MMM, MRK, MSFT And NKE

In my opinion, the fundamentals are over-valued, the technicals are over-bought, and the consensus opinion is way too bullish. Economic and financial news, on balance, is negative and not supportive of taking any Bullish positions. There are, of course, exceptions.

I am currently turning Bearish because my Fundamental Valuations have been deteriorating for quite some time, and my Technical Indicators are breaking down weekly. It's just that simple!

Supporting Articles for this Week's Five Companies

Here are links to my archives for this week's focus group: MCDMMMMRKMSFTNKE.

Table of the Five Dow 30 Component Companies

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A Twenty Year Chart Offers a Perspective That Always Gives You Greater Profits

It has NOT always been like you are being told by so many who do not take the time to do their homework and "Invest Wisely." Every Dow 30 Component Company has taken some big hits over the years.

Here are links to 20-year chart for each of the five: MCDMMMMRKMSFTNKE.


At this writing, dissecting these five Companies suggests that the very old Bull General Market is deteriorating. Of the 30 component Companies in the Dow Industrials, currently 6 are Losers and 24 remain Bullish. For reference, just six months ago there was only one Loser. My Forecasts suggest that within the next six months a notable number, not all, of the current 24 Bullish Dow components will become Losers. It is simple mathematics with a few caveats: When there are more bullish companies you have a bull market, and vice-versa. The trick is knowing the Bulls from the Bears! As this occurs, the Dow Industrial Index will be taking hits or pull-backs that will clearly confirm to you that a Bear Market is in the making.

My work with the Dow 30 Industrials is by far the most graphic of all my Analytic (Indices and Other Key) Indicators. Sharing it with the Public is a pleasure and I indeed hope you will profit by my work.

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