The Happy Meal for Investors:

Some may be disappointed when they see leadership from supertanker names like MCD. It shows defensiveness to them. To me it’s all about PRICE action and the chart below of the casual dining leader is just what you want to see. Smooth, gradual trade and it is higher 11 of the last 12 weeks, and all 11 CLOSED in the upper half of the weekly range (just one week rose more than 3% ending 3/15). It sports a dividend yield of 2.3%, and the leaders in the dining space have been strong. One wants peers acting well and CMG and WING, latter reports after close Tuesday, are fine examples. All three of the names mentioned in this paragraph are right at or very near all time highs. 

Running Away From Global Giant:

Adidas not only displayed good relative strength today, but is higher 12 of the last 19 weeks which sounds tepid, but it has gained 40% since the late December lows, and is really taking it to the general in the group NKE. On a YTD basis ADDYY is higher by 36% compared to NKE up 13% in ’19 thus far (last week while ADDYY rose 9%, NKE dropped 3%). The stock is trading right at all time highs, and has a higher dividend yield than NKE too at 1.33%. Monday started on the right foot, refusing to be subjected to the selloff is yet another bright sign.  

Examples:

On days like Monday it is always good to see which names will shrug off the weakness best, as they are often the ones that will attract capital into them going forward. Below may be one of those examples with the chart of ANGI, and how it was presented in our 4/30 Consumer Report. This name is trying to reestablish itself as a leader and last week jumped more than 13%. The right side of a WEEKLY cup base is looking much better after the move through the 17.50 area that was 50 day SMA resistance. Monday it was higher showing it may be ready to keep building on its recent big gains.

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