What Is the Strongest Stock on the Dow?
If you had to make a guess about which of the Dow Jones Industrial Average’s 30 stocks is the strongest right now, what would your guess be?
Maybe Apple (NASDAQ:)? Microsoft (NASDAQ:MSFT)? No – the strongest stock right now may surprise you – it certainly surprised me.
Let’s chart it from the Daily Perspective:
“Stocks which are strong tend to get stronger” – that’s our guiding principle at least.
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We like to highlight strong trending stocks and buy pullbacks (retracements) or breakouts as the trends continue.
Right now, Home Depot (HD) gapped higher and surged from $120.00 to $135 in seven straight sessions.
Yes, retracements are often easier and less risky than breakout trades, but I highlighted the last three breakouts for Home Depot’s stock (all were successful).
Home Depot is a well-known home improvement retail store that sells various items from building materials, lawn/garden items, and just about anything you can imagine for retail customers and contractors.
It’s a simple concept and the share prices continue to rise in a strong uptrend, especially with the recent breakout.
Here’s the broader perspective from the Weekly Chart:
After a stagnant late 2013 and early 2014, share prices broke impulsively (there’s another breakout opportunity) above the $80.00 per share level.
From there, price rallied above $115.00 and then traded in a stable rising uptrend through the rest of 2015.
When adding stocks to your portfolio and identifying swing trading candidates, look to strong trending stocks and look to buy strength – either via pullbacks (retracements) or aggressive breakouts.
Stay tuned as we highlight additional strong trending stocks in the Dow and S&P 500 Indexes.