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3 Bulletproof Stocks For An Uncertain Market
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3 Bulletproof Stocks For An Uncertain Market
It has finally happened! Once again, October proved itself to be the witching month for stocks.To get more news about green bullet proof vest, you can visit bulletproofboxs.com official website.
The market barometer of the Dow Jones Industrial Average plunged below its 200-day simple moving average (SMA). After falling over 600 points on Wednesday, Oct. 25 without an intraday bounce, fear swept the financial markets. Volatility spiked with the VIX hitting 26 as investors raced to protect their positions with derivatives.
As regular readers know, I am a strong proponent of the 200-day SMA as THE major price support line. Not only is the 200-day SMA used by leading institutions, but it is also the only technical indicator with academic research indicating its worth.While the 200-day SMA support was violated, the market still needs to trade below the indicator for several sessions before I start questioning my bullish stance.
Often the 200-day SMA gets violated for a session or two then comes roaring back as the bargain buying ignites. That said, technical analysis is only a small part of my overall market analysis.Sharp down moves with spiking volatility create the ideal environment for a simple, yet highly effective stock picking strategy. In fact, this strategy is used by proprietary traders and other professional stock investors worldwide to identify stocks with strong odds of moving higher.
The tactic is ideal for identifying stocks that deserve further research into their viability for a long-term portfolio. At the same time, technically driven, short-term investors use the stock-picking strategy to find short-term winners relying purely on the price movement.
Here's how it's done. After a sharp overall market decline, screen for stocks making new 52-week highs despite the sell-off. The reason this makes sense is because when a stock shows strength in the face of market weakness, it often outperforms once overall strength returns.
This Pennsauken, New Jersey-based snack food manufacturer and distributor hit all-time highs at $161.82 per share during the aggressive sell-off. The stock is up just under 4% for the year, and 19% over the last 52 weeks. It's hardly a parabolic move, but it appears sustainable.The company posted decent performance in the last quarter as sales increased 4% to $306.2 million from $295.4 million the same time last year. Net earnings climbed 3% to $26.1 million in the current quarter from $25.3 million last year. Earnings per diluted share increased 4% to $1.39 for the third quarter from $1.34 last year. What I find most appealing is that net earnings grew 46% to $80.2 million in the nine months from $54.8 million last year. Earnings per diluted share increased 47% to $4.27 from $2.91 last year. However, operating income fell 2% to $79.6 million this year from $81.2 million last year.