The Breakout That No One Is Talking About: Consumer Staples!

JC Parets
December 12, 2017

In the world we live in today, it's hard to find someone that is excited about Consumer Staples. "Why, do they have a new digital coin out?" is what you might hear. While some people treat the the volatility in certain asset classes as something to be distracted about, we just look at bitcoin and its fellow coins as another investing vehicle. Consumer Staples have just as important of a role in our process. Today, I want to talk about the breakout we've seen this week in the Equally-weighted Consumer Staples Index Fund.

The way I learned it, the bigger the base, the higher in space! We want to buy breakouts from markets that have been range-bound for a while. Consumer Staples are one of them.

Here is the Consumer Staples Equal-weight Index Fund $RHS coming out of base that goes back to 2016. This was the 3rd attempt to break out above that 130 level and it has finally done so successfully. We want to be long Consumer Staples if $RHS is above 130 with a target above 140:

I don't think it should be surprising that Consumer Staples broke out from this 2-year base. Look at the major uptrend that they're in. Consolidations tend to resolve in the direction of the underlying trend. This one is certainly not down. So this should be expected and we want to be buying Consumer Staples:

For a list of stocks we want to buy in the Consumer Staples Sector, Members Click Here

If you're not already a member, you can sign up here for a risk Free trial and check it out.

Cheers,

JC

 

Filed Under: