MONEY IS MOVING TO CONSUMER STAPLES -- COCA COLA ENTERPRISES, GILLETTE, AND SARA LEE ARE AT OR NEAR FOUR-YEAR HIGHS
CONSUMER STAPLE LEADERSHIP... Given the markets recent problems, it's no surprise to see money flowing to defensive consumer staples. Chart 1 shows the Consumer Staple ETF trading near its old high and well over its 50-day moving average. More importantly, its relative strength has been rising since January, which is right around the time that the market rally stalled. The RS line appears to be moving into new highs. Several consumer staple stocks are already achieving upside breakouts.
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COCA COLA ENTERPRISES... One of today's leaders in the consumer staples group is Coca Cola Enterprises. Its daily chart shows the stock moving into new high ground today. Its monthly chart shows the stock moving over 25 for the first time in four years. That's an impressive upside breakout in what appears to an emerging uptrend.
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GILLETTE REACHES FOUR-YEAR HIGH... Gillette is another staple leader. Its daily chart shows the stock breaking through chart resistance at 40 on rising volume. Its monthly chart shows the stock trading at a four-year high after recently breaking out of a major basing pattern.
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SARA LEE STILL CLIMBING... The daily chart of Sara Lee shows the stock moving up toward 24. The monthly bars show why that's an important level. A close over 24 would represent an upside breakout through its 2000 high and would put the stock at the highest level inn four years. Its relative strength line is also starting to rise again.
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