Endless non-stop selling continues to sink financial markets lower in admist of one of the greatest bear markets in history. Since October 2007, the Dow Jones Industrial Average has sunk 54% off its highs. When will the selling stop? We take a look at each component's move to date and try to come up with a rationale level where we reverse course.
Here is a table of how each Dow component has performed since being off its highs within the last 3 years:
Symbol 3yr hi 3/6/09 Diff$ Diff% ========================================== AA $48.77 $5.20 -$43.57 -89.34% AXP $65.89 $9.98 -$55.91 -84.85% BA $107.83 $29.84 -$77.99 -72.33% BAC $55.08 $3.12 -$51.96 -94.34% C $57.00 $1.02 -$55.98 -98.21% CAT $87.00 $23.62 -$63.38 -72.85% CVX $104.63 $58.28 -$46.35 -44.30% DD $53.90 $17.16 -$36.74 -68.16% DIS $36.79 $15.92 -$20.87 -56.73% GE $42.15 $6.89 -$35.26 -83.65% HD $43.95 $18.01 -$25.94 -59.02% HPQ $53.48 $26.25 -$27.23 -50.92% IBM $130.93 $85.18 -$45.75 -34.94% INTC $27.99 $12.28 -$15.71 -56.13% JNJ $72.76 $47.78 -$24.98 -34.33% JPM $53.25 $15.50 -$37.75 -70.89% KFT $37.20 $21.59 -$15.61 -41.96% KO $65.59 $38.85 -$26.74 -40.77% MCD $67.00 $51.05 -$15.95 -23.81% MMM $97.00 $41.92 -$55.08 -56.78% MRK $61.62 $22.76 -$38.86 -63.06% MSFT $37.50 $15.24 -$22.26 -59.36% PFE $28.60 $12.55 -$16.05 -56.12% PG $75.18 $45.54 -$29.64 -39.43% T $42.97 $22.54 -$20.43 -47.54% UTX $82.50 $38.14 -$44.36 -53.77% VZ $46.24 $27.10 -$19.14 -41.39% WMT $63.85 $49.41 -$14.44 -22.62% XOM $96.12 $63.49 -$32.63 -33.95%
The average percentage decline of all 30 stocks is 55% with the most weakest stocks coming from the financial sector (AXP, BAC, C, JPM). Looking at this, it appears there's still a ways to go, perhaps to the 5800 level on a big sell off.
In a previous article Historical Statistics of the Dow Jones Industrials we can look back to September 2008 when the Dow plummeted 777 points.
We could very well be looking at a similar scenario developing over the next few weeks.
About Kerry Kobashi
Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.
- Login to post comments
