Procter and Gamble ( PG) is next, and we like this name. This is a solid chart and a good big cap Dow 30 name as well. Royal Dutch Shell ( RDSA) is Barron's next choice and we like the chart -- and energy is an overweight for us currently.

Sanofi ADS ( SNY) is a drug but is also European, and while this name could do well and we would consider purchase, we like American names such as Eli Lilly ( LLY) better. We would also include a bit of iShares DJ Pharmaceuticals ( IHE) as it is hitting new highs and is a way to invest in a sector that should outperform next year.

Seagate Technology ( STX), has positive moving averages, but the stochastic pattern is a little bit negative and we would avoid the name. On the other hand, Vodafone ( VOD) is an attractive chart in a defensive sector and may be a way to have some European exposure that will outperform if Europe trades badly next year.

We hope this helps for putting together some ideas for 2012. Expect to see our thoughts on what we can expect in 2012 in the weeks ahead.



Fred Meissner is founder and publisher of The Fred Report. Fred is a CMT and past President of the Market Technicians Association (MTA). He recently left Merrill Lynch's Market Analysis Department and Sector Strategy Department to form The Fred Report.�A detailed bio is here:Fred Meissner.

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