Trading Nation

Dow tumbles again, but two names could be a buy

These Dow stocks could be waving a red flag

The Dow is stumbling again Wednesday, and a handful of its stocks are flashing a warning signal.

Pfizer just entered a death cross, while Boeing, Exxon Mobil, Caterpillar, Verizon, Johnson & Johnson and 3M entered one earlier this summer. A stock enters a death cross when its 50-day moving average crosses below its 200-day moving average, a technical development that signals a decelerating trend.

However, founder Todd Gordon says Boeing's death cross could mark a surprising turn for the stock.

"That should be a bearish signal. It wound up being very bullish, in fact, for Boeing," Gordon said on CNBC's "Trading Nation" on Tuesday. "A lot of bad news came out, sunk the stock [in March], we've got another cross. I would say the same thing happens again."

Boeing's previous death cross in mid-December preceded a 38% rally to its top at the beginning of March. That month, the second of two deadly crashes of the new Boeing 737 Max occurred, raising questions about Boeing's culpability.

"If we can hold above the $300 mark in Boeing, I like it. I think despite all the bad news, with a broader market rebound, I think Boeing is a good, kind of, scoop here," said Gordon.

Boeing would need to fall 9% to reach Gordon's $300 level of support. It dipped below there during its December sell-off.

Erin Gibbs of Gibbs Wealth Management sees a different Dow stock reversing its downtrend.

"I actually like Johnson & Johnson. It's one of the few that really doesn't have any fundamental or headline risks," she said. "It's nice and stable. Even if we faced a global slowdown, this is a company that's still going to do well, and produce those profits. And it's down well below its three-year valuation range. It's just a good place to buy in and get in on the short-term."

J&J is slightly lower this month. By comparison, the XLV health care ETF has dropped more than 1%.