Dow 7350 Was the Low

Is the fix in? Do we have a bottom lurking -- a la Doug Kass' statements? I know that to get back to Dow 7350 -- the intraday low -- will take some real work, but Du Pont (DD), Merck (MRK) and AT&T (T) are doing their best to create it!.

When I say "the fix," I mean that there are enough buyers out there without redemptions -- as opposed to Legg Mason's Bill Miller, who reminds me of some of the tech managers who never recovered after 1999 -- who are going to do their best to prop up prices.

Can it be done?

I think so.

But that's because of the makeup of the Dow.

Consider that McDonald's (MCD), Coca-Cola (KO), Procter & Gamble (PG), Johnson & Johnson (JNJ) and Kraft (KFT) all benefit from this new commodity environment. AT&T and Verizon (VZ) have scale benefits that made their lows of $20 and $23 seem like gifts. Same with Wal-Mart (WMT), which you see today. It is tough to take Home Depot (HD) back to $17 given its high yield and the refinance activity.

Pfizer (PFE) and Merck are quandaries. Their wounds and declines are self-inflicted. I don't think they can go much lower, because their dividends are safe and can make their lows unbreachable now that bonds are so low in interest.

Microsoft (MSFT) can go back to $17, no problem -- that was the low. Intel's (INTC) got dividend protection. Hewlett-Packard (HPQ) is doing well but it's still vulnerable, although it is hard to believe it can go to its low of $28 given that it just surprised to the upside.

Chevron (CVX) and Exxon (XOM) are extremely vulnerable with the decline in oil because they keep rallying. They have been totally immune to the decline, which is what makes me feel that oil will rise eventually. Right now they can get smacked, but I go back to "the fix is in," as these stocks have simply stopped trading with the rest of the oils.

General Electric (GE) just reiterated its projections -- first time for that, so I think that it will be hard for that one to take out its lows.

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