Safe Bullish Bets on Catepillar, FedEx, Iconix Brand, UPS

NEW YORK (TheStreet) -- Here are a few safe bets in this crazy market.

Today, we'll look at Caterpillar (CAT), FedEx (FDX), Iconix Brand Group (ICON) and United Parcel Service (UPS).

1. Caterpillar, a heavy equipment maker, traded positive on Wednesday, up .72% to $104.62 per share.

Wednesday's range: 103.43 - 104.66

52-week range: 80.86 - 107.40

Wednesday's volume: 3,393,310

Three-month average volume: 5,464,620

Caterpillar is in a good rally, and so pull up the back hoe and load up on the pullback. The stock has been in an uptrend since November, up almost 30%.

Over the last few days, Caterpillar had a minor pullback, going down to the 20-day simple moving average. On Wednesday, shares crossed back over the t-line (t-line=eight-day exponential moving average) and formed a bullish hammer signal, which triggered a buy signal.

As usual, we'll need to see some follow-through today, but Caterpillar is a really safe bet in this choppy market. 

Caterpillar reported great earnings on April 23, gapped up and then traded to its 52-week high.

Investors took profits on the days that followed earnings. Now, it's bounced off the 20, and is back on the rise.  I'd set a stop at about $102.56, and target the top of the current trading channel to start, then add to the position on the pullback. Stay long until you see a confirmed sell signal, or a close below the t-line. 

2. Next, let's look at Iconix, a brand-management company. 

Iconix traded positive on Wednesday, closing up 0.58% to $41.97 per share.

Wednesday's range: 41.37 - 42.03

52-week range: 27.90 - 43.34

Wednesday's volume: 673,537

Three-month average volume: 595,152

Iconix has been in an uptrend for the last few years, up almost 190% since June 2012. Iconix reported earnings on April 30 and had a big day, trading up almost 7%.

The following days, shares consolidated back to the t-line, like charts are supposed to do. The chart is forming a bullish flag signal now, and so watch for a breakout in the next few days. Plus, yesterday's candlestick is a combination of a bullish hammer and a bullish harami signal. All signs for a buy.

I'd set a stop just below the open of the candle formed on April 30 at $41. The only real resistance is at the 20-year high of $43.34.

Stay long until you see a confirmed sell signal. In my opinion, there needs to be a definitive sell signal to exit this trade. 

3. Next let's see, UPS, the package-delivery company.

UPS traded positive on Wednesday, closing up 1.45% to $98.83 per share.

Wednesday's range: 97.60 - 98.88

52 week range: 84.20 - 105.37

Wednesday's volume: 1,922,915

Three-month average volume: 3,050,600

Pull up your brown shorts and pack your parcels full of UPS shares.

This year didn't start well for UPS investors as shares traded down 10% after reaching their all-time high of $105.37. After that correction, shares traded back up and then consolidated. The stock has been trading sideways for a couple moths. That tells me that the bottom is established.

Even after the company reported unfavorable earnings, shares remained in the sideways channel. Wednesday's candle formed a bullish kicker type signal, not textbook, but good enough for me. Plus, Wednesday's candle engulfed the previous week's candles.

UPS looks to be delivering profits on time and with a smile. I'd set a stop at about $95.71, and target the all-time high.

Stay long until you see a confirmed sell signal, or a close below the t-line. 

4. Next let's look at UPS's main rival, FedEx..

FedEx traded positive on Wednesday, and closed up 2.25% to $138.54 per share.
 
Wednesday's range: 136.01 - 138.67

52 week range: 94.60 - 144.39

Wednesday's volume: 1,874,280

Three-month average volume: 2,249,400

UPS and FedEx roll together, as their charts look very similar to each other. On Wednesday, UPS shares gapped up to the t-line, and traded over near-term resistance levels.

A close above yesterday's close of $138.54 will confirm the upswing breakout. I'd set a stop at $133.99, and target the 20-year high of $144.39. There isn't much overhead resistance to speak of. Stay long until you see a confirmed sell signal, or a close below the t-line, with confirmation. 

>>Read More: How to Trade Earnings, Including CBS and Monster Beverage

>>Read More: Groupon and Twitter Among 7 Stocks Taken to the Woodshed

At the time of publication, the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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