In his book "Trader Vic - Methods of a Wall Street Master" Victor Sperandeo felt compelled to say "It's a buy when the 10-week moving average crosses the 30-week moving average and the slope of both averages is up." I'm not sure how many Trader Vic fans are out there, but here's two stocks we might want to keep an eye on that have early stages of these two characteristics and are components of the Dow Industrials Average.
Microsoft Corporation - Weekly Interval
PremierMarkets.com turned bullish on shares of MSFT not long after the recent Option Investor Expo in early April. At that time our "reason" for liking the stock was that the point and figure chart looked very bullish and indicated a potential bullish price objective of $75. Currently, I'd like to see the stock pull back to the $60 level, but the above chart's intermediate-term (10-week) and longer-term moving averages (30- week) also give indication that the stock my have some good days ahead, even if we do get a pullback to $60.
Du Pont Chart - Weekly Interval
The supply/demand chart on shares of Du Pont (NYSE:DD) aren't nearly as favorable as that of MSFT, but the stock looks like it is building a base of biblical proportions. If shares of DD were able to break above the $50 level I'd begin to think the base the stock has been building since September of 2000 becomes a launching pad for the bulls. While DD doesn't seem to be an "exciting stock" there are those that perhaps held the stock in early 1999 that disagree as the stock jumped from $51 to $75 in the course of 2 months. Sometimes it's not a bad idea to have one or two boring stocks in the portfolio. Just remember that it wasn't raining the day that Noah built his ark!