The world is almost collectively holding its breath concerning the possible break-up of the EU, should Britain vote to exit it today. Actual results won’t be available until the wee hours of Friday morning for us here on the East Coast of the US. I’ll not be staying up to find out. On Wednesday, like Monday and Tuesday, our markets opened higher, then petered-out throughout the day, to close a bit lower. I read a few others who say our market is poised to breakout upon a ‘positive’ outcome of the “Brexit” vote. That may be, but when I see 3 days of pop and drop in the markets, that suggests to me topping action, as though a lot of selling was going on. I’ll update my timer and see if it concurs with that view, or not, and put the result on the end of this post.
Running my search for only the very best of the safe-dividend growers, I find 23 that are worthy portfolio components: JKHY, HRL, NKE, TJX, ROST, EFX, HD, UNH, AOS, NOC, LOW, TSCO, EL, STZ, SYK, COST, SBUX, FDS, LMT, RAI, CVS, NADAQ and DG.
Then, from among those 23, these 11 show incredible price resiliency, in that they are clearly market leaders for their price strength: EFX, UNH, AOS, NOC, LOW, STZ, COST, FDS, LMT, RAI and DG.
As I look overseas… the world is certain Britain will not leave… the 1 and 2% increases in the markets, and in our own index futures suggest another fine pop this morning.
Updating the timer, it was going to need more time, and more downside, to ever signal a low-risk market entry opportunity. Risk, as measured by anything I am looking at, says that it is only about half wrung out, and is medium at this time. And, I was correct in my assessment in the first paragraph about the topping action, as the timer was ‘saying’ that risk was coming out, meaning selling was what was taking place, as distribution was what was really going on underneath the veneer of index price action.
Here’s to your investment success!
Harold F Crowell