This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nasdaq Leads the Five Major Averages

Stocks in this article: ^HGX^ABAQ^BKXAABACHPQGSNKEV

Like I said in February 2007 when the banking index set its all-time high, 'you can't have a bull market in stocks with a bear market in financials'. The regional banking index includes the four 'too big to fail' banks and this week we learned that all four are significantly cutting back on the mortgage origination businesses, which is not good news for the housing market.

Later this month three stocks will vacate the Dow Industrial Average with three new members coming on board. Here are my buy-and-trade parameters for these stocks.

Alcoa (AA) ($8.16) is trading between its 50-day SMA at $8.01 and its 200-day SMA at $8.41. This hold rated stock leaves the Dow with fair value at $8.74 and a one-year price target at $7.81. My monthly value level is $7.78 with a semiannual risky level at $11.33.

Bank of America (BAC) ($14.48) is trading above its 50-day SMA at $14.33. This hold rated stock leaves the Dow with fair value at $13.23 and a one-year price target at $14.94. My semiannual value level is $10.09 with a monthly pivot at $14.26 and annual risky level at $17.07.

Hewlett Packard (HPQ) ($21.96) is trading between its 200-day SMA at $20.93 and its 50-day SMA at $24.99. This buy rated stock leaves the Dow with fair value at $24.00 and one-year price target at $24.11. I do not have a value level with a semiannual risky level at $24.24.

Goldman Sachs (GS) ($163.35) is above its 50-day SMA at $160.52. This hold rated stock enters the Dow with fair value at $129.82 and a one-year price target at $166.10. My semiannual value level is $123.16 with a monthly risky level at $177.43 and annual risky level at $186.86.

Nike (NKE) ($68.08) traded to a new multi-year high at $68.90 on Thursday. This hold rated stock enters the Dow with fair value at $53.16 and a one-year price target at $68.72. I do not show value levels with a quarterly pivot at $68.02 and monthly risky level at $69.52.

Visa (V) ($185.06) traded up to $187.81 on Thursday staying above the 50-day SMA at $182.84. The hold rated stock enters the Dow with fair value at $154.78 and a one-year price target at $185.89. My semiannual value level is $172.20 with monthly and quarterly pivots at $191.00 and $193.54.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs