Some names continue to act well as the market takes a little breather. Some are acting better than others and that relative strength should be taken note of. Many names are flagging at all time highs and we will look at two below. This type of coiling behavior can lead to future powerful gains. Below is how the following 3 names were precisely looked at in recent Game Plans.
In our Tuesday 11/10 Game Plan we looked 11/10 Game Plan MCD was examined. It has taken the throne of best of breed name in the fast food space from CMG or BWLD (BWLD we will look at below as a bonus idea). Yesterday the name was volatile after the halt and not looking for REIT status, but technically this name still looks solid above the flag breakout at all time highs. Longs should be “lovin it”, pun intended.
Stocks that can be bought as they take out bullish flag formations are MCD. MCD is a best of breed casual diner higher by 21% YTD and 19% over the last one year period and sports a solid dividend yield of 3%. Earnings have been a positive with gains of 8.1 and 3.1% on 10/22 and 4/22 and drops of .5 and 1.5% on 7/23 and 1/23. The round par number had been a problem on a weekly basis as 8 weeks traded above 100 or within pennies the weeks ending 2/27, 3/6, 3/27, 5/22 and 7/31-8/21 with no CLOSES above until the week ending 10/9. MCD is higher 6 of the last 7 weeks and the lone down week ending 10/30 lost only .3%. The last 3 weeks all CLOSED taut within just 1.06 of each other and enter with a buy stop above 114.