The Dow Gained 8.5% In October Led By Microsoft, Chevron And These 3 Stocks

The Dow Jones Industrial Average closed at 17,663.54 on Friday the previous week, for a solid gain of 8.5% in October, which lowers the year-to-date decline to just 0.9%, and pulls the average just 3.7% below its all-time intraday high of 18,351.36 set on May 19.

The five Dow stocks with the biggest gains in October were; Chevron, DuPont, General Electric, McDonald’s and Microsoft. Among these Chevron, GE and McDonald’s are three of the six “Dogs of the Dow” Of 2015.

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Chevron (CVX) +0.00% 

closed at $90.88 on Friday previous week, up 15.2% in October but the stock is down 19% year-to-date and in bear market territory 32.7% below its all-time high of $135.10 set on July 24, 2014.

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Courtesy of MetaStock Xenith

The weekly chart above is positive with the stock above its 5-week modified moving average of $86.88 with its 12x3x3 weekly slow stochastic rising to 72.07 last week up from 61.17 on Oct. 23. Chevron had been below its 200-week simple moving average since the week of Jan. 9 when the average was $111.95. The 52-week low of $69.58 set on Aug. 24, the day called “Black Monday” in China.

Strategy Guideline: Holding a monthly value level of $86.23 targets a quarterly pivot of $92.96.

DuPont (DDSclosed at $63.40 on Friday previous week, up 31.5% in October, but is down 14.3% year-to-date and in correction territory 17.2% below its all-time high of $76.61 set on March 13. The 52-week low of $47.11 was set on Sept. 29.

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Courtesy of MetaStock Xenith

DuPont’s weekly chart is positive with the stock above its five-week modified moving average of $56.27 and above its 200-week simple moving average of $56.26. The 12x3x3 weekly slow stochastic reading rose to 64.78 last week up from 49.14 on Oct. 23.

Strategy Guideline: An annual pivot is $50.11 with a quarterly risky level of $66.83, where profits should be taken.

General Electric (GE) +0.00% closed at $28.92 on Friday previous week, up 14.7% in October and up 14.4% year-to-date. The stock set a multiyear intraday high of $29.83 on Oct. 23. At its flash crash low of $19.37 set on Black Monday, Aug. 24 the stock was briefly in bear market territory.

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Courtesy of MetaStock Xenith

The weekly chart above is positive but overbought with the stock above its five-week modified moving average of $27.43 with its 12x3x3 weekly slow stochastic rising to 87.17 last week up from 83.07 on Oct. 23, making the stock more overbought. GE had been above its 200-week simple moving average since the first week of 2012 when the average was $18.20. This moving average is now $24.03, last crossed on Black Monday, Aug. 24.

Strategy Guideline: Holding a quarterly pivot of $27.87 targets a semiannual risky level of $32.90 where profits should be taken.

McDonald’s (MCDhad a close of $112.25 on Friday previous week, up 13.9% in October and up 19.8% year-to-date and set an all-time intraday high of $113.95 on Oct. 26. <span class="quotecard ng-isolate-scope" article-quote-card="" data-ticker="MCD" data-exchange="NYSE" data-type="organization" data-naturalid="fred/company/2783" data-quotes-closing="112.85" data-quotes-now="113.31" data-link="/companies/mcdonalds" data-name="McDonald" s'="" style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; vertical-align: baseline;">McDonald MCD +0.88%survived its flash crash low of $87.50 set on Black Monday, Aug. 24.

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Courtesy of MetaStock Xenith

The weekly chart above is positive but overbought with the stock above its five-week modified moving average of $104.42 and its 200-week simple moving average of $95.90. The 200-week provided the staging ground for the upside breakout since the week of Sept. 12, 2014. The 12x3x3 weekly slow stochastic reading is rose to 89.01 last week up from 85.14 on Oct. 23, becoming more overbought.

Strategy Guideline: Holding a semiannual pivot of $106.20 targets annual risky levels of $118.26 and $118.62.

Microsoft (MSFT) +0.00% closed at of $52.64 on Friday previous week, up 18.9% in October and up 13.3% year-to-date and set a multiyear intraday high of $54.37 on Oct. 27. The stock survived its flash crash low of $39.72 set on Black Monday, Aug. 24.

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Courtesy of MetaStock Xenith

Microsoft’s weekly chart is positive with the stock above its five-week modified moving average of $48.12 with its 12x3x3 weekly slow stochastic reading rising to 77.32 last week up from 71.07 on Oct. 23. The 200-week simple moving average of $37.22 was last tested during the week of Jan. 11, 2013 when the average was $27.18.

Strategy Guideline: Holding quarterly and semiannual pivots of $52.55 and $50.76, respectively, keeps the momentum run alive.

Disclosure: I have no positions in Microsoft, Chevron, DuPont, General Electric or McDonald’s.

 

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