NEW YORK (TheStreet) -- On Aug. 1 the Dow Transportation Average set a new all-time high at 6686.86 despite having a sector rating of "avoid-source of funds." The transportation sector has this rating because 70% of all stocks in this sector have sell or strong sell ratings according to www.ValuEngine.com.
The Dow Jones Industrial Average set its all-time high at 15,658.43 on Aug. 2, and 14 stocks in this benchmark index have buy ratings, as I noted on Aug. 1 in "August Begins With New Highs and New Risky Levels." These stocks still have buy ratings today. I have been suggesting that investors allocating cash to the stock market focus on the buy-rated Dow components with 50% of investment dollars in cash.
The S&P 500 set its all-time high at 1709.67 on Aug. 2, and 139 stocks, or just 27.8% of these stocks have buy ratings. A warning is that only 15 of these stocks are undervalued.
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