Archive for September 12th, 2009
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Keep Watching McDonalds (MCD)
Yesterday I mentioned that McDonalds was demonstrating poor relative strength when this stock was compared to the SP500 “big engine” and that a decline in that stock was probable, in the event the entire stock market declined. The theory is that if a stock cannot rally when the entire stock market is advancing, what do you think the stock will do, if the entire stock market begins to fall?
The dow was down a bit today to stop the recent advance and McDonalds (MCD) set a new low for the past 3 months. Traders Country Club was created to educate new investors in how to trade the markets with a proper perspective and analysis. If the stock market corrects further next week, watch MCD. Learn how to avoid the “dogs of the dow”.
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