The Closing Print live trading and financial blog during market hours.

Consumer staples continues its juggernaut, bouncing firmly off Volume by Price (VBP) support levels, achieving conspicuous gains over the past week. A few leading stocks in this group deserve closer scruity and scholarship.

Consumer Staples

XLP caught our attention recently, as we began to weigh the FED decision on rates and seasonality that the month of August ushers in. Noteably, August is one of the worst months of the year for the markets, so its no surprise that staples are recieving some attention. XLP, XLU and XLV are considered defensive, so when institutions start buying its time to pay attention to their motives.

Price is rising above the 9/20ema, with MACD above its signal line and rising along with RSI. Volume shows institutions are present and accounted for.

XLP Consumer Staples

Leading Stocks in the Consumer Staples Sector

A quick scan of the components in the SPDR XLP Consumer Staples Sector produces a few noteable candidates. Most of the group are moving higher.

Sanderson Farms (SAFM) heralds from the top of the IBD list in its category. We are adding SAFM to the watch list and will likely take a position this morning. Scale in using the Trade of the Day (ToD) setup.

Sanderson Farms Leading Stocks

RSI and MACD are rising, with the latter above its signal line. Bulls are in control. Volume is rising. I would anticipate a pocket pivot soon, once the crowd notices staples are in play.

That said, stops should be calculated using the (ToD) setup upon your initial entry path. Use flags to note where buyers arrive and support our entries. Losing these flags intraday would cause us to step back and reanalyze, though I do not anticipate that will happen.

More: Meanwhile, TTMI continues higher.

Other noteable candidates: PEP WMT PF PPC PG KO 

Have a great day!


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