NEW YORK ( TheStreet) -- My suggested allocation to stocks continues to include at least 50% out of the market in cash equivalents. Part of the amounts invested in the stock market should be allocated to buy rated stocks in the Dow Industrial Average.On May 22 when I wrote, Allocate Assets to Buy-Rated Dow Stocks there were 15 buy rated names to choose from. Today the ranks of the buy rated companies has thinned to 10, which is a warning that the stock market could be vulnerable in the second half of the year. Fundamentally www.ValuEngine.com still shows that stocks are trading under the cloud of a valuation warning with more than 65% of all stocks overvalued. In the Dow industrials there are two stocks rated sell, Boeing ( BA) ($103.03) which has a monthly value level at $96.22 and a weekly risky level at $108.69, and DuPont ( DD) ($53.70) which has a monthly value level at $48.23 and a weekly risky level at $59.73. The Dow has 18 hold rated components. Investors should consider booking profits on Dow components not shown in today's table of stocks. Note that only one out of 10 buy rated Dow stocks is undervalued that seven had double-digit gains of 10.0% to 45.5% over the last 12 months. The projected gains for the next 12 months should be limited to 4.6% to 8.8%. Caution flags are up as the 12 month trailing price-to-earnings ratios are becoming elevated between 14.7 and 23. All but one is above its 200-day simple moving averages which risks reversion to the mean.