After closing above multi-year highs, the major US Benchmarks pulled back in somewhat lower volume this week. A variety of
geopolitical developments, and the ever lingering Fed talk put investors on guard. The S&P 500 Tracking ETF (SPY) has gained +1.42% for the
month and a solid +18.91% for the year. The Tech heavy NASAQ 100 Tracking ETF (QQQ) is up +2.29% for the
month and higher by +23.92% for the year. These are stellar returns which many individual stocks will find
hard to gain in a whole year.
A market pause is entirely not unreasonable to anticipate at this time considering this strong run up. It is
even healthy for equities to digest these gains. While Technology, Software, Semiconductors have powered this
market higher, Staples haven't been forgotten either. Especially, when high flying growth names consolidate
it is possible for Staples to get some additional attention from investors.
Considering a market pullback, one stock in the Consumer Staples sector has been showing strong price action
in recent weeks. This Cereal Maker - Post Holdings (POST) - logged a solid positive key reversal this week
and closed above its 10-week SMA. The stock has been consistently staying above the 40-week SMA line
since the start of the year. After logging a high of $113.73 in late April of this year, the stock has been
consolidating and hasn't broken above this range.
Company is set to announce 3rd quarter results on 8/1/2019 and expectations are for a strong quarter.
While core fundamentals are not robust, there is likely to be a tradeable opportunity emerging. Immediate
support is at around the $101.50 levels. Resistance is around $113.75. Traders may want to keep an eye
on this stock over the coming weeks.
Good Luck and Happy Investing!