Market View: If You Believe The Dow Low Will Hold, PFE
July 29, 2008 12:44 AM
If you believe the Dow low will hold, and would rather not simply buy an ETF to mimic the index, then a stock worth looking at on further weakness may be Pfizer (PFE). The chart looks a bit better than many (it is almost impossible to find ANY chart that looks good right now) although it did reject the recent high of $19.25. keep in mind, the chart would look FAR better if it did not reject that high. But virtually all charts look very ugly right now - so if long, pick your medicine.
Therefore, do not chase strength on this at all. Weakness is likely to hold just under $18 - if the Dow low holds, that is. In addition, the stock will bring a 7% dividend yield on any weakness. I would have to look more into the balance sheet to know if there is ANY chance of this being cut, but if not, this pays far more than the 10 year treasury at 4%.
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