Nervous? Hide in the Staples
- Posted by Greg Harmon
- on February 29th, 2012
Nervous about this market? Many are. But what can you do about it? Bonds yield nothing and have looked ready for yields to start rising, buying them now could be disastrous. Buy Apple, $AAPL? Well that is getting to be extremely over bought on a daily, weekly and monthly chart. Even Gold, $GC_F, with its $100 drop looks a bit scary. But a deeper look at the market shows there was one sector that actually was green on the day Wednesday. The Consumer Staple Select Sector SPDR, $XLP, not only was green Wednesday but made a new all time high close. Is it time to get defensive again and buy this ETF? Signs point to yes.
Consumer Staple Select Sector SPDR, $XLP
The chart above shows the rising channel where $XLP has been trading in the top half the majority of the time since mid August. It is nearly parallel to the rising Simple Moving Averages (SMA) and it has a bullish and rising Relative Strength Index (RSI) and a moving Average Convergence Divergence (MACD) indicator that is positive. All point to more upside. It also cleared support Wednesday at 33.13 giving a good level to trade against for a nervous type, with 32.70 below for those with a little more patience. And it moved higher on good relative volume. Nothing sexy but a good place to hide with promising upside potential if you are nervous on the markets.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Dragonfly Capital Views Performance Through April 2014 Expiry
- Currency Discussion on FX Street
- Premium Earnings 4-17-14
- Enter the Pound
- Time to Sign Up for Netflix
- Premium Earnings 4-16-14
- Risk Rotation or Risk Off: Small Caps, Large Caps, and Foreign Risk
- Leaders Of The Pharmaceutical Pack
- Premium Earnings 4-15-14
- Gold over Silver