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Consumerdefensive

COST: Technical Strength Ahead of EarningsMuch of the Consumer Defensive industry and most Discount Stores have been in decline due to rising inflation. Many stores are struggling with lower revenues due to higher costs and their customers being more frugal during rising inflation periods. NASDAQ:COST is an exception with its massive strategy to buy food and common consumer necessities directly from producers and manufacturers and then use the Costco private label, Kirkland. The quality of the packaged food or clothing or other consumer product is the same, but with its ability to buy huge quantities, it has higher revenue growth after the pandemic that other stores would envy. The stock needs to settle into a sideways or platform trend to pattern out some excessive pricing structure from last quarter. It reports May 30th and the trend implies that the report should meet or exceed estimates. The previous Fundamental level is a Dark Pool Buy Zone, providing solid support. Pro traders followed that with a new pattern I call "the Nudge" which tends to lead upward momentum.
NASDAQ:COSTLong
by MarthaStokesCMT-TechniTrader
Food Stocks are Rising, and CellAg Leads the SectorRising food costs and inflation worldwide are benefiting food industry stocks as consumers are paying more for food, leading to increased profits for food companies. In addition, the food industry is considered a staple industry, providing essential products to consumers, leading to relatively stable and consistent returns for investors. Furthermore, food stocks are considered relatively recession proof given the inelasticity of demand for basic food products. As a result, food industry stocks have become increasingly attractive investments, with increased demand driving up share values prices. Over the past month the 5 of the 6 food stocks I've got in my portfolio are showing largely positive returns, with a clear preference for food technology over more industrial-scale food, particularly meat, manufacturers. Take a look at the spread; whereas SPY, a convenient baseline, is +6.6% since 12/30. Underperforming this was JBSS, with a performance near par. One factor contributing to this was political instability in Brazil, which has exerted a bearish effect on multinationals like JBS based in the country. TSN and BHIL, two US meat mainstays, performed +7.67% and +18.89%, respectively. Nice gains over a short window indeed. However, they've been left ion the dust by food tech companies with exposure to the CellAg market. Take KROP, a foodtech ETF. It has broad exposure to a range of food-related securities including CellAg, and its +19.73% over the last month. This leaves its 1mo performance suspended between the big meat stocks and more speculative cultivated meat plays. And that takes us to the other end of the spectrum; following some volatility associated with a recent share offering, STKH is +35.71%, a clear lead for my portfolio. Performance has been more moderate for LSE's ANIC (+14.41%) and CULT (+17%). Overall, Q1 '23 is shaping up to be a very strong Q for food stocks and consumer defensives as a whole. While I'm planning on holding biggies like TSN, JBS, and BHIL on a LT horizon, STKH and other cultivated meat stocks are looking increasingly bullish as the field moves forward by leaps and bounds.
NYSE:TSNLong
by EagleEyeAnalytics
Consumer Defensive Plays for a Red December $PG $PEP $CATGiven these potential dampeners on holiday mood, what are some ways to eke out some green amidst a sea of read? In the current economic environment, it may be beneficial for investors to consider consumer-defensive or cyclical stocks as a defensive play. These types of stocks are typically less sensitive to economic fluctuations and tend to perform well during challenging market conditions. Here are three consumer-defensive/cyclical stocks to consider that are have seen steady gains over the past quarter and continue to look attractive: Procter & Gamble (NYSE: PG): Procter & Gamble is a consumer goods company that produces a wide range of household and personal care products. As a consumer-defensive stock, it tends to be less affected by economic downturns, as people continue to purchase household essentials even during tough times. Additionally, Procter & Gamble has a long history of steady dividend payments, making it an attractive choice for income-oriented investors. PepsiCo (NASDAQ: PEP): PepsiCo is a multinational food and beverage company that produces a range of products, including snacks, beverages, and cereals. As a consumer-defensive stock, it tends to be less affected by economic downturns, as people continue to purchase food and beverages even during tough times. Additionally, PepsiCo has a strong track record of steady dividend payments, making it an attractive choice for income-oriented investors. Caterpillar (NYSE: CAT): Caterpillar is a cyclical stock that produces a range of construction and mining equipment. Cyclical stocks tend to be more sensitive to economic fluctuations, as demand for their products is often tied to the overall state of the economy. However, Caterpillar has a strong balance sheet and a long history of steady dividend payments, which may make it an attractive choice for investors seeking a defensive play in a challenging market. Overall, these three consumer-defensive/cyclical stocks may be a good choice for investors looking for a defensive play amidst challenging market conditions. While they may not offer the same potential for growth as more risky stocks, they may offer a more stable and reliable source of income and may be less affected by economic downturns. As always, it is important for investors to do their own research and consider their individual investment goals before making any investment decisions.
NYSE:PG
by EagleEyeAnalytics
GROV | I Love This Setup | LONGGrove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It provides cleaning essentials, such as kitchen and bathroom cleaning products, household cleaners, hand and dish soaps, paper products, and laundry care products; home and pantry products, including home fragrances, bedding and bath products, cookware and dinnerware, and pest control products, as well as trash, recycling, and compost bags; and clean beauty, haircare, skincare, oral care, period care, and kids and personal care products. The company offers health and wellness products, such as air purifiers, condoms, sun care and tanning products, vitamins and supplements, and treatments and preventions products; pet care products; indoor gardening products, garden tools and accessories, grow kits, plant seeds, gardening soils, fertilizers and lawn care products, and insecticides. It offers its products through retail channels, third parties, and direct-to-consumer platform, and mobile applications. The company is based in San Francisco, California.
NYSE:GROVLong
by DivergenceSeeker
2
Bear Market, Bull Market, or Sector Rotation? KNOW THE ROTATION! What Is Sector Rotation? Investors are always looking for opportunities to boost returns and reduce risk in their portfolios. One way to do this is by understanding and utilizing sector rotation. In simple terms, sector rotation is the process of moving money from one sector to another. In order to take advantage of positive market trends investors will want to pay close attention to these rotations. In general, there are two types of market conditions that investors need to be aware of: bull markets and bear markets. Sector rotation is a strategy that investors use to take advantage of these market conditions. The idea is to rotate your investments into sectors that are doing well in the current market conditions and away from sectors that are not. For example, in a historical bull market, you would want to be invested in sectors such as technology and healthcare. In a bear market, you would want to be invested in sectors such as utilities and consumer staples. Sector rotation can be a helpful tool for investors to boost returns and reduce risk. However, it’s important to understand how it works before implementing it in your own portfolio. Keep reading to learn more about sector rotation and some current YTD chart examples of what it looks like. Lets start with a philosophical question in regards to the market; is there really such thing as a bull and bear market? One could argue that there is not, and the market is in fact a cycle of sector rotations. Liquidity going out one, to another, again and again. Take for example the 4 tickers of the main post image MSFT , NASDAQ:TSLA , NASDAQ:GOOGL , NASDAQ:AAPL - these are considered Tech Stocks (yes TSLA is a tech stock!). YTD performance of all these stocks are in the red. Please take the time and study their trends. To the novice that had a portfolio made up of 80% tech, they would look at this chart and scream BEAR MARKET. But is it? It is impossible for the average trader to tell, but not all that money was "lost" in a bear market. It simply was rotated to defensive sectors. Sure, some money was taken out of the overall system I am sure but logic dictates that the majority of the money just found a new home. Investors in tech in these cases could ride the storm and average down (dollar cost averaging), write call options, or purchase puts (along with many other strats) - aka play a bear market in THAT sector. The terms "bull" and "bear" market are used to describe market conditions where prices are either rising or falling. Some people believe that there is a fundamental difference between the two types of markets, while others believe that they are simply two sides of the same coin. Ultimately, there is no right or wrong answer, and it is up to each individual to decide what they believe. So where did the Tech money rotate to? For those of you that need only bull markets to trade, find the rotation and follow it. Never marry a stock or sector - money moves fast and is prone to jumping ship when major events happen. Here are 3 charts that show areas that bulls have had success: EX1: Staples and Consumer; NYSE:HSY , NYSE:MCD , NASDAQ:OLLI , NYSE:WMT EX2: Energy, Industrial, Insurance; NYSE:KMI , NYSE:CAT , NYSE:OXY , NYSE:ABBV EX3: Defensive and Insurance; NASDAQ:HON , NYSE:RTX , NYSE:AFL , NYSE:CI If you take the time and study the charts above you will see that not all is bearish when you know where to look. Looking at these rotations can start to paint a larger picture when studying ETFs or the overall market in a national/global economy. Especially when it comes to finding a fair value area in the middle of a downed market. Recovery off of a bear market should be equitable across multiple sectors. In the current case (today) we see that the rotation into "defensive" stocks (all the stocks mention in EX1, EX2, and EX3). As there is a small pinch of hope that inflation could be slowing, the moves have been liquidity into these defensive sectors - not a sign of a healthy recovery (yet) in my opinion. Right now we are seeing more institutional interest in companies like HSY, MRK, CI, HON and less interest in Energy. Energy is a great sector to look at currently to start to see that shift. We can look at commodities like GOLD and see the increased attention and bullish run it has had recently. Remember, intuitions want to create the largest positions they can , but over time so as not to raise a flag to others. To find sector rotation: 1) Familiarize yourself with the S&P sector funds like the AMEX:XLF , AMEX:XLP , AMEX:XLE , AMEX:XLU , etc START LARGE - look at the Monthly, Weekly, and Daily 2) Scan for stocks with rapid price drops and identify sectors that may be hurting 3) Scan for stocks with rapid rising price WITH higher than average volume (preferable increasing volume as well) 4) Visualize the sectors in a heatmap. Size by Volume (Monthly) and Color by Performance (Monthly). Since this is constantly changing, I suggest taking a screen shot of this map every week - this will be the best way to "see" the money rotate. 5) When going through 2-4 consider comparing small and large cap companies as well - as this too can hold its own rotation. 6) Stay on top of news, read read read read. Understand the world around you and rely on change. 7) Utilize Smart Money Concepts. Please visit LUX ALGO's page for this, as he has made a beautiful indicator and strategy based around SMI and institutional order blocks. 8) Conduct an RSI or Stochastic RSI study to identify divergences in OVERBOUGHT or OVERSOLD conditions. 9) VIX VIX VIX - yes we are talking sector rotation and the VIX is an "overall" reflection of the market in whole but looking at areas of the VIX (ie 20 and 45) can give signs of upcoming rotation. Although it may not point where, it may describe when these rotations can occur. If you like this post and would like a more detailed follow up, please comment below so I can see your interest. This is a very extensive topic in which it may take several posts to fully write out in detail. This is post 1 and meant to be an introduction, as I know that almost every line below can be heavily expanded upon. Happy trading everyone!
NASDAQ:MSFT
by OccamsPhazer
KAL | Is My Math Off? | LONGKalera Public Limited Company, together with its subsidiaries, operates as a hydroponic vertical farming company in the United States and internationally. The company operates vertical hydroponic farms and related technology development facilities that produce various lettuce and microgreens for the retail and food service markets. It also holds a license to patented technology related to geopolymer concrete. Kalera Public Limited Company is headquartered in Orlando, Florida.
KLong
by DivergenceSeeker
2
TGT: All levels of interestTGT (Target), consumer defensive play crashing on bad earnings and inflation concerns.... Weekly chart. Now oversold. Can we go lower? Here are the levels I'm watching to enter: - 139.30: I'll be buying if we reach that level. If it holds it will be a long term investment for me. If it just bounces and drops, I'll be selling and looking for the next level. - 90-82: is the second zone of interest I'm watching. If we reach this zone I'll buy stocks as a long term investment. Trade safe.
NYSE:TGT
by Elpidaldo
Kroger stock is investor's safehaven in a volatile period.Hi everyone, Today I want to raise an interesting topic of stock market sector rotations. NYSE:KR is a great example to demonstrate that. Since late November broad risk assests have been selling off. When investors see the rise in volatility and sell their tech stocks, where do they put their money? They reinvest their money into low risk assets. NYSE:KR stock recently fired off a signal for a great buy opportunity . That's because Kroger represents Consumer Defensive stock sector and money has been flowing in from all the risk assets selling. And indeed, we can see that since November 22 stock gained around 25% in price. Now it is making all time highs, while all major indexes are nowhere near their tops. As the cycle continues, money will outflow from the stock, which will cause it to retrace back. But do not forget that Kroger is an established business with decent earnings and a long history of dividend payments. It won't crash like tech stocks tend to do. Instead, it will retrace to around 40-43 level. And when the tech recovers and we reach peak of bullish euphoria once again, just buy some Kroger stock . Trade wisely and good luck! ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise
NYSE:KR
by AyBe_Invest
After Dividends GIS Raised Prices...Will They CRUSH Earnings?Is GIS part of the global Supply Crunch? After several months our GIS retail play is holding up nicely but will they crush earnings? It seems they're poised to knock this out the park on 12 21, but anything could happen. Please DYOR before jumping in to GIS, read their prospectus & recent SEC filings, so there are no surprises. Full disclosure considering cutting bags here. We're done at the grocery store this quarter, & may look to rotate back into sectors that are down.
NYSE:GISLong
by CryptoQue
Is TNY trading in a Macro Ascending Triangle?TNY appears to be holding on to the green upward sloping support in this chart, the support is interestingly forming a giant Ascending Triangle. Potentially merit for a Inverted Head & Shoulders, only time will tell. Tinley has multiple upcoming operational updates that can influence these patterns to play out bullishly to the upside in a parabolic manner. 1. Canadian expansion of Cannabis-infused beverages & Beckett's. It appears as though Canadian expansion for the cannabis-infused beverages has been held off until Tinley received their Long Beach License because Tinley expects to provide reciprocal co-packing referral services with a Canadian co-packing partner. Updates on expansion to Canada are expected in August. 2. Some of Tinley's Co-packing clients will be announced in the near term because Tinley's Long Beach Facility received official licensing recently. The company is now in a position to consummate agreements in its pipeline of prospective co-packing clients, apparently there are five, and the CEO has mentioned some of the deals will put Tinley on the Map. Mentioned in one interview is a National Brewery, a well known Winery, and some well known Cannabis brands & mainstream beverage brands. 3. Beckett's shelf placement regarding approximately 6500 locations of interest, commitments from 4 chains for August, at least 1 is rumored to be Costco. 4. Working to finalize initiatives with prominent figures in sports and entertainment for marketing of Tinley products and co-packing clients’ products. 5. Expansion to Nevada. Tinley has several bullish milestones that if completed in a timely manner can have a serious impact on the share price to the upside, and on the contrary if delayed, the outcome would be vice versa & a retest of 20c CAD seems plausible.
CSE:TNYLong
by ScotianBot
1
Ascending Channel for TNY?TNY has seen some consolidation into an Ascending channel, which is another Bullish Pattern coinciding with multiple other bullish patterns that have played out recently. Noticeably the green bullish flag I have outlined is a recent bullish pattern, and there was also a giant inverted H&S that played out to the upside, the right shoulder being the green bull flag & the head of the pattern is the green human icon. How long the channel has lasted will help determine the trend's underlying strength. In the context of technical analysis, a channel occurs when the price of an asset is moving between two parallel trendlines. A channel consists of at least four contact points because we need at least two lows to connect to each other and two highs to connect to each other. Notice a possible divergence on the RSI?
CSE:TNYLong
by ScotianBot
$SFM can fall in the next daysContextual immersion trading strategy idea. Sprouts Farmers Market, Inc., a healthy grocery store, provides fresh, natural, and organic food products in the United States. The demand for shares of the company still looks lower than the supply. This and other conditions can cause a fall in the share price in the next days. So I opened a short position from $22,28; stop-loss — $22,54. Information about take-profits will be later. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas. Thanks for being with me!
NASDAQ:SFMShort
by KozakHlib
$BYND can rise in the next daysContextual immersion trading strategy idea. Beyond Meat, Inc., a food company, engages in the provision of revolutionary plant-based meats in the United States and internationally. The share price rose after announcing a new distribution deal with China. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price in the next days. So I opened a long position from $155,27; stop-loss — $148,56. Information about take-profits will be later. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas. Thanks for being with me!
NASDAQ:BYNDLong
by KozakHlib