If the volatility is getting you down, here’s a smooth one for you. (July 24, 2012)
XLP
I’m Dan Fitzpatrick at StockMarketMentor.com on Tuesday, July 24th. I want to look at XLP Consumer Staples ( $XLP Consumer Staples Select Sect. SPDR (ETF) ) and this is why; a lot of things aren’t really working particularly well; a few things are working well. This is one that I think you need to be watching. Why? Well, because staples, this is stuff that everybody buys, irrespective of whether they’re rich or poor, everybody’s got to be clean so they buy soap; those that don’t you really kind of wish they did; toothpaste, you’d hope that everybody bought toothpaste though some don’t; if they decide to start cleaning up their act guess what? They’re buying a consumer staples product. Bottom line is, this is the stuff that generally does okay even in bad markets, and it does pretty well in good markets. It’s kind of like you know old steady Eddie on the way up and when the market gets really bad it’s kind of like mama, everybody likes to go home to mama. So watch the XLP Consumer Staples ( $XLP Consumer Staples Select Sect. SPDR (ETF) ) here, see how it behaves when it comes down to this resistance level here, which is just about where it is right now; 50 day moving average, in a couple more days this will be up at this level, again, not too far from where it is right now. If you start seeing a bounce in the Consumer Staples ETF ( $XLP Consumer Staples Select Sect. SPDR (ETF) ) then go ahead and take some of this it’s a good safety trade, you’re not going to get rich owning this, but you’re not going to get poor owning it either, and there’s a lot of stocks out there these days that if you own it you can get poor in it. So just think of staples here as an ETF that’s going to help you weather this, you know, storm right now; you know however intense or mild you think it may be, I think we definitely have a little storm brewing here, this is a stock, this is a position, that’s going to help you weather that storm without getting your tent stolen. So anyway, members go over to the Strategy Session; I’ve got some stuff on Apple ( $AAPL Apple Inc. ) and various other things as well. Free Chart