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