Some encouraging signs are in motion regarding the economy las week. We witnessed some decent numbers being put up by the important transports (KSU price action Friday was an exception) as CSX jumped 9.4% for the week and cleared a cup base trigger of 50.41 Friday. NSC rose 4.3%, UNP by 3.3% and CP by 2% as well. Today we take a look into another group which can forecast strength or weakness going forward. Below is the chart of paper giant IP, and how it was presented in our Wednesday 3/29 Game Plan, which may be starting to play catch up with good looking peers PKG and KS which are both 3 and 6% off their respective 52 week highs, whereas IP sits 10% off its own. That has left a comparable attractive dividend yield of 3.51% however.
Stocks that can be bought as they pullback into the round numbers are IP. IP is a paper giant down 4% YTD and up 25% over last one year period and sports a nice dividend yield of 3.6%. Earnings momentum lower with losses of 5.6 and 2.2% on 2/2 and 10/27 after gains of .3 and 1.9% on 7/28 and 4/27. The stock is lower 5 of the last 8 weeks and now 13% off recent 52 week highs and notice Mondays hammer successfully retested the bull flag trigger near 49 from 12/1. It recorded a bullish hammer candle on 3/27 at very round 50 number and enter IP on pullback into it at 50.35. One can then add through 50 day SMA and then above 54.35 double bottom trigger.