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The Consumer Staples Bubble Is Popping

Kimberly-Clark (KMB - Get Report) ($103.40 vs. $95.66 on March 25) has been downgraded to hold from buy after setting a multi-year high at $106.54 on April 19. The weekly chart profile is positive but extremely overbought with the five-week MMA at $99.08. My quarterly value level is $98.05 with a weekly pivot at $102.86. Investors should book profits on this parabolic stock given the downgrade.

Coca Cola (KO - Get Report) ($42.15 vs. $40.04 on March 25) still has a buy rating and set a multi-year high at $42.96 on April 23. The weekly chart profile is positive but overbought with the five-week MMA at $40.60. My monthly value level is $36.15 with a semiannual pivot at $42.26.


Pepsico (PEP - Get Report) ($82.34 vs. $78.64 on March 25) has been downgraded to hold from buy and set a new multi-year high at $84.43 on March 23. The weekly chart profile is positive but overbought with the five-week MMA at $79.20. My annual value level is $79.02 with a weekly pivot at $82.66. Investors should book profits on this parabolic stock given the downgrade.

Procter & Gamble (PG - Get Report) ($77.12 vs. $77.27 on March 25) still has a buy rating and set a multi-year high at $82.54 on April 23. The weekly chart profile shifts to negative on a close this week below its five-week MMA at $77.80. My annual value level is $75.13 with an annual pivot at $78.73 and monthly pivot, now a risky level at $79.66. If this stock ends the week below its last week low at $78.85 it would be a key reversal on the weekly chart, which is a sign of a popping bubble.



At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.
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SYM TRADE IT LAST %CHG
K $63.05 -1.70%
KMB $109.54 -0.81%
KO $40.82 -0.34%
PEP $95.55 -0.42%
PG $79.92 -0.54%

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