Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Brand Name Breakouts Amid a Mixed Market

by April 15, 2023
April 15, 2023
Brand Name Breakouts Amid a Mixed Market

The stock market remains in an uptrend after modest gains for the week, which occurred amid signs that the economy is slowing down while inflation is cooling. It was a period marked by large intraday moves, however, as investors digested news that Fed officials are anticipating a mild recession later this year. Also, data last week showed that, while inflation is slowing, it remains at a highly elevated level, which may lead to more rate hikes.

DAILY CHART OF S&P 500 INDEX

Fed rate hikes in the face of a possible recession is not a great backdrop for the markets, and last week’s underperformance in the Technology sector underscored investors’ concern. These high growth stocks are particularly vulnerable to higher rates and fears of a slowing economy.

At this time, investing in companies that are growing and that also fare well despite a potential slowdown in the economy would be a great way to participate in the current uptrend. Focusing on stocks that are also breaking out of a sound base would be ideal, as this chart pattern often precedes further upside price action. Below is a prime example of a recession-proof company that broke out of a base last month amid an improved growth outlook.

MCDONALD’S CORP. (MCD)

Subscribers to my MEM Edge Report are quite familiar with McDonald’s (MCD), as we added the stock to our select list of Suggested Holdings in late March after its base breakout on above-average volume. MCD’s affordable menu, coupled with their operating margins improving more than Microsoft (MSFT) and other tech companies, had Wall Street raising their growth outlook for the company into year-end. Of note, McDonald’s opened almost 600 new locations during the great recession of 2008, while most restaurants retreated. The stock is in a confirmed uptrend with further upside potential.

Below is Merck (MRK), which broke out of a 3-month base last week amid news that the FDA has accepted their Keytruda-based therapy for advanced GI cancer for review. This news adds to the company’s exceptionally deep drug pipeline, which has analysts calling for above-average earnings growth over the next five years. The 2.5% yielder is also trading at 15 times trailing 4 quarter earnings, which is below the average P/E for stocks in the S&P 500.

DAILY CHART OF MERCK (MRK)

Healthcare stocks also outperformed during 2008 and, while we’re not calling for a recession that will be anywhere close to what took place back then, precedence tells us that innovative drug companies can fare well despite a difficult economic backdrop. MRK has positive momentum, with its RSI and MACD above 50 and headed higher, and last week’s base breakout puts the stock in a position to trade higher.

While Technology stocks have underperformed over the past two weeks, the sector remains in an uptrend with select areas posting solid gains. My MEM Edge Report has several high quality Technology stocks on the Suggested Holdings List that have been outpacing the broader markets and are poised to continue to do so. We’ll stay with these stocks as long as they remain in an uptrend.

If you’d like immediate access to my Suggested Holdings List, as well as be kept on top of our detailed market and sector rotation analysis during these choppy times, use this link for a 4-week trial of my twice weekly MEM Edge Report at a nominal fee.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
Ron DeSantis speech to New Hampshire Republicans momentarily interrupted by protesters
next post
Another attorney leaves Soros-backed prosecutor’s scandal-ridden office, citing ‘toxic work environment’

You may also like

Slower Job Growth, Treasury Yields, Earnings: Stock Market...

August 4, 2023

Two Index ETFs with Rising Momentum

December 13, 2022

Rocket Launches Fire Across Tech Space

May 26, 2023

The Future of Options Trading: Real-Time Technical &...

October 26, 2024

Oops, I Did It Again!

December 31, 2023

Buoyant Technical Setup In This CV Stock

February 3, 2023

Soybeans Could be the Next Parabolic Runner

November 16, 2023

The Market Breadth Indicator You Should Be Following

May 6, 2024

Buying Opportunity or Trend Reversal?

December 22, 2023

Week Ahead: Markets’ Reaction to Exit Poll and...

June 3, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved