GILLETE AND KELLOGG HIT NEW 52-WEEK HIGHS AS PART OF ROTATION INTO CONSUMER STAPLES

GILLETTE BREAKS OUT OF MAJOR BASE... Gillette is one of the consumer staples that have been attracting new monies of late. The daily bars in Chart 1 show the stock hitting a new 52-week high today. It's relative strength line has been rising throughout most of February as money has been flowing into more defensive market sectors. The longer-range picture is even more impressive. The monthly bars in Chart 2 show the stock trading at the highest level in three and a half years, and appears to have broken out of a major bottoming formation. Its longer-term relative strength line has just turned up after a weak 2003.

Chart 1

Chart 2

KELLOGG IS POPPING... Kellogg is also trading at a new 52-week high today. The daily relative strrength line is also rising. The monthly bars in Chart 4 show the stock trading at the highest level since 1999. Apparently, people are eating a lot of cereal in the morning -- after they finish shaving. Kimberly Clark is another consumer staple hitting a new multi-year high today.

Chart 3

Chart 4

Chart 5