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Nasdaq Leads the Five Major Averages

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 - Get Report) ($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 - Get Report) ($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 - Get Report) ($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 - Get Report) ($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 - Get Report) ($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 - Get Report) ($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.

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SYM TRADE IT LAST %CHG
AA $13.58 0.00%
BAC $15.61 0.26%
GS $198.10 0.00%
HPQ $33.41 0.00%
NKE $99.98 -0.01%

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