Heading toward 2002-2003 market lows?
Market sentiment and technical oversold levels remain at extreme levels, and positive divergences may be developing on the most recent price weakness. While these continue to suggest potential signs of a near-term bottom, continued weak price action is indicating that a move to the 2002-2003 market lows – about 7,200-7,500 for the DJIA and 770-800 for the S&P 500 – remains a good possibility.
New positions
No new positions were added this week.
Watchlists
No stocks of interest showed up on this week’s “upside strength” scans.
In addition to many others already previously mentioned, the following stocks showed up on this week’s “oversold” scans of beaten-down stocks of interest, suggesting that likely further near-term weakness may represent a buying opportunity: Aflac (AFL), AT&T (T), BHP Billiton (BHP), Dover Corp. (DOV), Great Plains Energy (GXP), Johnson Controls (JCI), Kimberly-Clark (KMB), Microsoft (MSFT),* Sanofi-Aventis (SNY), and Verizon (VZ).
* I currently own and/or have an options position on this stock.
