Call toll-free 800.328.1267
One of the biggest events in the history of the Dow Jones Industrial Average happened last August when Salesforce.com replaced Exxon Mobil as an index member. A 21-year software company elbowed out a transnational giant tracing its origins to John D. Rockefeller and the dawn of modern capitalism.
Despite the stunning endorsement, things haven’t worked out so well for CRM since then. Its shares peaked above $280 one week later and then turned lower. (That was a giddy moment for growth stocks because Apple and Tesla had just split their shares.)
Additionally, TradeStation analytics show that CRM has gone 172 sessions without a new 52-week high. That’s the longest for any member of the Dow Jones Industrial Average. XOM, in contrast, hit a new high yesterday.
It’s a good lesson in froth and exuberance: Just when it seems things can never go wrong, it’s often a sign of the top. Other adages that could apply are “buy the rumor, sell the news,” or “be fearful when others are greedy.”
The chart above compares CRM to XOM since they traded places in the Dow. Notice how XOM lagged for a couple more months but then…
For more, please click here to view the related idea and chart analysis on TradingView.
Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than...
Oracle jumped to new highs almost two months ago. Now, after a pullback, the software giant may have found support. The first pattern on today’s chart is the gap higher on March 12 after earnings surprised to the upside. ORCL retraced the move and is starting to...
Most of the big earnings reports have now occurred, and so far they've done little to boost the market. Companies like Microsoft (MSFT), Meta Platforms (META), Netflix (NFLX), Caterpillar (CAT) and Intel (INTC) reported profits above Wall Street estimates. However...