• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Brand Name Breakouts Amid A Mixed Market
Stock

Brand Name Breakouts Amid A Mixed Market

by April 15, 2023
by April 15, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The stock market remains in an uptrend after modest gains for the week that occurred amid signs that the economy is slowing down while inflation is cooling. It was a period marked by large intraday moves however, as investor’s digested news that Fed officials are anticipating a mild recession later this year. Also, data last week showed that while inflation is slowing, it remains at a highly elevated level which may lead to more rate hikes.

DAILY CHART OF S&P 500 INDEX

Fed rate hikes in the face of a possible recession is not a great backdrop for the markets and last week’s underperformance in the Technology sector underscored investor’s concern. These high growth stocks are particularly vulnerable to higher rates and concerns of a slowing economy.

At this time, investing in companies that are growing and that also fare well despite a potential slowdown in the economy would be a great way to participate in the current uptrend. Focusing on stocks that are also breaking out of a sound base would be ideal, as this chart pattern often precedes further upside price action. Below is a prime example of a recession proof company that broke out of a base last month amid an improved growth outlook.

MCDONALD’S CORP. (MCD)

Subscribers to my MEM Edge Report are quite familiar with McDonald’s (MCD) as we added the stock to our select list of Suggested Holdings in late March after its base breakout on above average volume. MCD’s affordable menu coupled with their operating margins improving more than Microsoft and other tech companies, had Wall Street raising their growth outlook for the company into year end. Of note, McDonald’s opened almost 600 new locations during the great recession of 2008 while most restaurants retreated. The stock is in a confirmed uptrend with further upside potential.

Below is Merck (MRK) which broke out of a 3-month base last week amid news that the FDA has accepted for review their Keytruda based therapy for advanced GI cancer. This news adds to the company’s exceptionally deep drug pipeline that has analysts calling for above average earnings growth over the next five years. The 2.5% yielder is also trading at 15 times trailing 4 quarter earnings which is below the average P/E for stocks in the S&P 500.

DAILY CHART OF MERCK (MRK)

Healthcare stocks also outperformed during 2008 and while we’re not calling for a recession that will be anywhere close to what took place back then, precedence tells us that innovative drug companies can fare well despite a difficult economic backdrop. Merck (MRK) has positive momentum with its RSI and MACD above 50 and headed higher and last week’s base breakout puts the stock in a position to trade higher.

While Technology stocks have underperformed over the past two weeks, the sector remains in an uptrend with select areas posting solid gains. My MEM Edge Report has several high quality Technology stocks on the Suggested Holdings List that have been outpacing the broader markets and are poised to continue to do so.  We’ll stay with these stocks as long as they remain in an uptrend.

If you’d like immediate access to my Suggested Holdings List as well as be kept on top of our detailed market and sector rotation analysis during these choppy times, use this link for a 4-week trial of my twice weekly MEM Edge Report at a nominal fee.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

You Might Also Like
  • Small Caps Breaking Out BULLISH
  • Sector Spotlight: S&P 500 – Consumer Discretionary Sector Holds the Key
  • DP Trading Room: NVDA Lifts Semiconductors Higher
  • Sector Rotation Breakdown: Spotting Market Leaders Now
Share
0
FacebookTwitterPinterestWhatsapp

previous post
A ‘mild’ recession is now likely this year, Federal Reserve says
next post
Options Vega Explained: Price Sensitivity To Volatility

You may also like

Stay Ahead Of The Curve To Make More Money

July 16, 2023

Market Rally or Fakeout? How Politics and Earnings Are Driving...

April 12, 2025

An Incredible Stock Market Rally Closes the Week on a...

November 3, 2023

The Best Five Sectors (1)

January 3, 2025

Why I Don’t Track the NH-NL Line

May 26, 2023

3 WAYS to Pinpoint When a Stocks Uptrend is Ending

December 10, 2024

Channeling The Energy From Lower Interest Rates

November 19, 2023

S&P 500 Makes a New All-Time High By End of...

April 27, 2024

Bristol Myers Squibb’s Rising SCTR Score: Seize the Moment to...

February 28, 2025

Nvidia Plunges Over 6% to Mark the End of the...

June 25, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Three Industrial Stocks With Room to...

    March 27, 2024

    These S&P 500 Stocks Are Poised...

    November 1, 2024

    My Downside Targets for the S&P...

    October 28, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here