The consumer staples and utilities have seen powerful rallies over the past few quarters. In particular, the all-American brands defined as staples have become somewhat of a hot commodity in light of the Heinz buyout, and an overall seeking of yield greater than savings accounts and Treasuries.
However, to run with a theme present in Josh Brown’s earlier blog post, note that both General Mills and Kellogg, for example, have both punctured their respective upper monthly chart Bollinger Bands, an exceedingly rare technical development.
While this is usually the sign of impressive and even abnormal strength, and I have been bullish on these types of stocks for quite some time (see here and here), the staples are by and large dramatically overbought now–To the point where defensives are no longer defensives, without a meaningful cooling off period first.
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