McCormick Earnings are an Opportunity to Put a Little Spice in Your Life

• Posted by Greg Harmon
• on March 29th, 2011

McCormick & Company (ticker:$MKC)reported earnings Tuesday before the market opened. The spice maker had a solid first quarter and reiterated guidance going forward.  Despite that the stock dropped nearly 1.7%.  This is a huge opportunity to get in cheaper. MKC is an example of a stock with great technicals that nobody wants to trade because it is not flashy. Just look at the chart below.

How boring. It has been in a solid uptrend for 2 years doubling in the process. Who wants to own a stock that only goes up in both up and down markets and doubles in two years. Me. And today’s pullback towards the 50 day Simple Moving Average (SMA) is my gift to you. It may continue to pullback further, with support at 47.30 from previous price action and then the 50 day SMA at 46.72, but the trend for this stock is rock salt solid higher. If you do not buy it tomorrow to tuck away in your portfolio at least put it on your list for when it hits bottom.

While you are at it, take notice of two other similar performers, Autozone (ticker:$AZO) and Carbo Ceramics (ticker:$CRR). The uptrends of these two stocks have been long and strong like MKC, but not quite as defined.

The AZO chart above shows a pullback at the beginning of the new year and then a resumption of the trend higher at nearly the same slope. It is now near the high from December 30th, and if it gets through expect this trend to continue. a definite one to watch and for the more aggressive to buy with a stop just below the 100 day SMA.

The chart for CRR below has also had a 2 year uptrend. It still has strong momentum higher and has been a recent darling of the trading community. Wait for the next consolidation period and then a test of the 50 day SMA as an entry point. Until then keep it on your watchlist.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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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.

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