The S’Mores Trade
- Posted by Greg Harmon
- on July 17th, 2012
We are in the height of the summer grilling season with the temperatures reaching into the 90′s. Summer grilling means a ton of pictures of steak, chicken and fish on instagram, but when the main meal is done the search begins for that perfect stick to roast marshmallows and make S’mores. Luckily it only takes trades in two stocks to cover this backyard dessert staple of the summer, Kraft Foods, $KFT, maker of both Jet Puffed Marsh mallows and Nabisco Graham Crackers, and Hershey Foods, $HSY, for the chocolate. These stocks seem to know the season is here. Take a look.
Kraft Foods, $KFT
Kraft Foods, $KFT, is breaking higher after finishing a ‘W’ pattern. A continued move over 40 gives it a target of 43 to start. It does not have to stop there though. In fact pulling out to the Point and Figure Chart (3-box reversal with $1 box size) gives a price objective of 68.50. Rounding out the trade Hershey Foods, $HSY, is building a bull flag over 71.40 with a top at 73. A move over that flag top brings a target of 76 on a Measured Move. Again with the lack of a time constraint, the Point and Figure Chart has a bullish price objective much higher at 98. You could make a lot of S’mores if you owned both of these stocks to those long term price objectives.
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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)
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