Dow keeps testing the 8000 floor

Dow has been in a trading range for more than 3 months. 8K has been a solid floor, as shown in the first chart. Last week, it kept bouncing, bouncing & bouncing off that floor. More earnings will be reported in the next 2 weeks, when that floor will be retested.


Dow Jones Industrials --- 2 weeks




Dow Jones Industrials --- 3 months




During these troubled time, new investments should be thought about. I'm a dividend guy & especially favor higher yields. The S&P 500 Dividend Aristocrats are an excellent place to look for buying opportunities. I have published articles on this group at SeekingAlpha.com & istockanalyst.com, which have attracted interest. Some companies in this elite group have not only stood the test of time in paying higher divs but, even in today's difficult economic environment, should be able to continue increasing divs. A few I favor, for no particular reason other than they have long records of higher divs & strong financial statements, are:


3M (MMM)
Coca Cola (KO)
Exxon Mobil (XOM)
Kimberg-Clark (KMB
Johnson & Johnson (JNJ)
McDonalds (MCD)
Procter & Gamble (PG)
VF Corp (VFC)
Wal-Mart (WMT)
Caterpillar (CAT)

OK, CAT is not in the group. They have been paying divs annually for most the last century, but have not been able to increase divs continuously year over year. However, with a long track record of paying divs, a strong balance sheet & a global business which will do well when economies return to a growing mode, they deserve consideration.

Earnings should dominate this week when the future economic stimulus package is being kicked around in DC. Let's see if the Dow breaks thru the floor or buyers keep that from happening.