It hasn't been a very happy new year for the bulls so far. The broad
market S&P 500 index came within a point of its all-time high before
the slide began. And the blue-chip Dow Jones Industrial Average was hit
hard last week, down 3.5% for the worst weekly performance in years.
Only
three of the Dow 30 components show a gain in 2014, and the index is
off 4% year to date. The worst Dow performer has been General Electric
(NYSE:
GE), which is down almost 10% for the year.
The
risk/reward favors the bulls at these levels. A third of the Dow and a
quarter of the S&P 500 companies will release earnings this week,
which should help put the fundamentals in perspective.
In the past
four and a half years, every pullback in GE has recovered to make new
highs. And the stock has support at $25 to lean on.
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