Editors' Pick: Originally published Jan. 28.
Jim Cramer's list of "38 Anointed Stocks for 2016" includes six components of the Dow Jones Industrial Average (DIA) . And here's a technical approach to how to trade them.
General Electric (GE) is an old-line industrial giant the strayed into financial services, but began shedding those assets in 2015. Weakness at the close of 2014 made the stock one of the "Dogs of the Dow" for 2015. The stock was the fourth-best performer of the Dow 30 in 2015, with a gain of 23.3%. GE had a modest negative reaction to earnings on Jan. 22.
Home Depot (HD) , the home improvement retailer, is a major player in the big-box retailing space. This stock has been on a strong momentum run-up since confirming a "golden cross" back on Dec. 5, 2011, when the stock closed at $40.23. (A "golden cross" occurs when the 50-day simple moving average rises above the 200-day simple moving average, indicating that higher prices lie ahead.) The stock was the third-best performer of the Dow 30 in 2015, with a gain of 26%. Home Depot reports quarterly results on Feb. 23.
Johnson & Johnson (JNJ) is a diversified health care company, including pharmaceuticals and related consumer goods. The stock was little changed in 2015 and outperformed the Dow 30. J&J had a positive reaction to earnings on Jan. 26.
3M (MMM) is an industrial company concentrating a diversified group of consumer and manufacturing products from Post-it Notes to security devices. The stock underperformed the Dow 30 slightly, with a loss of 8.3% vs. a 2.2% loss for the Dow 30. 3M had a positive reaction to earnings on Jan. 26.
Nike (NKE) is the premier maker and seller of athletic footwear and equipment for many sports worldwide. Nike was the best performer among the Dow 30 in 2015, with a gain of 30%. Nike had a positive reaction to earnings on Dec. 23, setting an all-time high, and has since been consolidating gains on profit taking.
Pfizer (PFE) is a major pharmaceutical company. The stock outperformed the Dow 30 with a modest gain of 3.6% in 2015. Pfizer is scheduled to report results on Feb. 3, and analysts expect earnings of 51 cents a share.
The Dow 30 is down 8.5% year to date, and is in correction territory, 13.1% below its all-time high of 18,351.36 set on May 19. The year-to-date performance of five of six of Jim Cramer's Dow component "anointed stocks" are outperforming the Dow 30.
Here's a scorecard for Jim Cramer's "anointed" six Dow components.
Now let's look at the weekly charts for each.