The serious indexes tried to recover Friday after a massive sell-off in the untimely session that briefly sent the Dow into correction territory. The Dow and S&P are now on trail for the worst March performance since 2001.
The recent selling pressure is billet c preserve a dent in many large-cap Dow components, which are now sitting in bear sell territory.
General Electric is the biggest Dow laggard, down more than 56 percent from its 52-week drugged, while Walmart has fallen 21 percent, Proctor & Gamble and Merck are both down 18 percent, and intensity giant Exxon Mobil has dropped around 17 percent from its great.
Of these names, Craig Johnson, senior technical strategist at Piper Jaffray, weighted Merck’s chart shows that the stock looks poised for a breakout.
“Here’s a inventory that has corrected right back to the uptrend support line off of the recently 2012 lows … [this] has been a good indication to us that dialect mayhap momentum to the downside is fading and this is where we want to be buying the supply so we would be a buyer of Merck at these levels,” Johnson said Thursday on CNBC’s “Vocation Nation.”
On the other hand, Larry McDonald, founder of The Bear Snares Report, said he sees better value in GE.
The industrial giant has been massively underperforming the broader vend over the last 12 months. GE’s shares are down 55 percent, while the S&P 500 is up all but 13 percent in the same time period.
Nevertheless, “the risk-reward in GE is unbelievable … you’re buying GE at a massive discount to where some of the great value investors in the great own this stock. You might have 10 percent down side, but your upside is 30, 40 percent – what we label a bear market rally in the name in the next quarter or two,” McDonald estimated Thursday on “Trading Nation.”
GE shares were trading around $13.40 last morning Friday.