IBM strongest of the Dow Jones Industrials

International Business Machines (IBM) is the stock in the most demand of the Dow Jones 30 Industrials, according to accumulation and distribution (A/D) ratings by Investor’s Business Daily (investors.com). A/D ratings measure the supply and demand for a stock.

A look at the A/D ratings for the 30 stocks in the Dow Jones gives an investor a feel for the strengths and weaknesses of the individual stocks. The stocks in the DJ Industrials index had an average A/D rating of C+, according to Thursday’s paper. That means there was an equal amount of buying and selling of those stocks.

But now IBD is saying the market is in a correction, and most technical analysts agree. So the DJ’s A/D rating is likely to slide soon.

IBM gets an A A/D rating. That means that during the last 13 weeks, there has been heavy buying of the stock.

American International Group (AIG), Proctor & Gamble (PG) and Three M Company (MMM) are the weakest stocks in the famous DJ index. Their A/D rating is a E. This means, according to IBD, that a “stock has been experiencing heavy selling, based on its daily price and volume changes over the last 13 weeks.”

The next strongest Dow Jones Industrial after IBM is Alcoa (AA) with an A- rating.

Stocks with B (moderate buying) A/D ratings: AT&T (T) and Disney (DIS)..

Stocks with B- (moderate buying)  A/D ratings: Boeing (BA), Caterpillar (CAT), Chevron (CVX), General Motors (GM), J. P. Morgan Chase (JPM), McDonald’s (MCD) and Wal-Mart (WMT).

Stocks with C+ (equal amounts of buying and selling) A/D ratings: Johnson & Johnson (JNJ).

Stocks with C (equal amounts of buying and selling) A/D ratings: American Express (AXP), Coco Cola (KO), Home Depot (HD) and Merck (MRK).

Stocks with C- (equal amounts of buying and selling) A/D ratings: Bank of America (BAC),  General Electric (GE), Hewlett-Packard (HPQ), Intel (INTC) and Verizon (VZ).

Stocks with D+ (moderate selling) A/D ratings: Dupont (DD) and Exxon Mobil (XOM).

Stocks with D (moderate selling) A/D ratings: Citigroup (C).

Stocks with D- (moderate selling) A/D ratings: Microsoft (MSF), Pfizer (PFE) and United Technologies (UTX).

Full disclosure: I don’t own any of these stocks.

For educational purposes only. Investigate stocks on Reuters.com, Yahoo.com and Google.com. Also, search the web for information.

 

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