Tags: six stocks | highs | trading | markets

CNBC: 6 Stocks Keep Hitting Highs Despite Volatile Markets

(Nuthawut Somsuk/Dreamstime)

By    |   Friday, 24 May 2019 01:11 PM

A half-dozen stocks of household-name companies apparently have the right stuff to withstand all of the recent stock-market volatility fueled by interest-rate uncertainty, trade-war fears and political and global worries.

McDonald’s, Waste Management, Hershey, Visa and Costco have notched records this month, while ConEd has surged to 52-week highs, CNBC explained.

Bill Baruch, president of Blue Line Futures, told CNBC that these six stocks remain solid long-term investments, but under-the-radar signs hint they could be ready to pause.

“There are some technicals that do worry me at these levels after such great rallies,” Baruch told CNBC. “Take a look at McDonald’s here first. There is an ascending wedge and this ascending wedge can be a bearish pattern if it falls down below it. At the same time, you’re getting an ADX, a trending signal, that’s showing that the trend could be starting to peak.”

Costco and Visa, too, could be running out rope after a more than 20% rally for both so far this year, Baruch said.

Costco “still needs to make a weekly breakout here,” he said. “It’s also showing that the trend is somewhat exhausted here and then Visa, very similarly, hasn’t had the weekly breakout. The trend is a little bit exhausted or dying off.”

“Take a step back and as an investor, the best answer is always going to be maybe take a little off the table or protect your downside,” said Baruch. “I like the idea of going out to December, going out to the end of this year, and protect your downside with cheap insurance and then that way you can sleep at night.”

To be sure, U.S. stocks gained on Friday, ahead of a long Memorial day weekend, as investors breathed a sigh of relief after President Donald Trump indicated that the protracted trade war with China could end soon, Reuters reported.

Trump said on Thursday that Huawei Technologies Co Ltd could be included in the trade deal. However, no high-level talks have been scheduled since the last round of negotiations in Washington two weeks ago.

The positive news came after a slump in markets on Thursday. The S&P 500 index is on pace to end the week 1% lower, which would make it the third straight week of losses for the benchmark index, as markets worried that the trade war would result in a global economic slowdown.

Adding to concerns that the broader economy was slowing, data showed that U.S.-made capital goods fell more than expected in April.

“The positive trade narrative has trumped data today,” said Mike Dowdall, investment strategist for BMO Global Asset Management, in Chicago.

“There has been a reversal in sentiment in trade, which has helped stocks bounce back. Markets are watching each small statement that is coming out to decipher broadly where talks are going.”

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A half-dozen stocks of household-name companies apparently have the right stuff to withstand all of the recent stock-market volatility fueled by interest-rate uncertainty, trade-war fears and political and global worries.
six stocks, highs, trading, markets
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2019-11-24
Friday, 24 May 2019 01:11 PM
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