Slow and Steady Wins The Race?
Not too long ago there was much discussion about the Jet acquisition for WMT and how that would give them a leg up in their fierce competition against AMZN regarding web sales. Comparing the two charts is almost like apples to oranges, and opposites regarding beta. Consider WMT, a large supertanker, but it has its advantages over AMZN. It sports a dividend yield of 2.1%, and has outperformed Amazon over the last one year period, higher by 20% compared to while AMZN has risen just 4%. Below is the daily chart of WMT and it looks as if we were back in 2017, where the market displayed virtually no volatility, as current markets gyrate. In the last 2 months it has recorded just 3 CLOSES below the very round 100 number and is honing in on all time highs. Respect.
Not Much Joy in Toys:
The toy space has been a tough one to survive. Bankruptcy hit a well known play Toys R Us recently, and I do remember a time when JAKK was relevant, but that names now trades less than $1 and is nearly 80% off most recent 52 week highs. Below is the ratio chart contrasting HAS and MAT. The latter popped on some licensing deals Tuesday, but its strength may prove temporary. This perennial laggard is down 41% from most recent 52 week highs, even with this weeks robust rise of 9% thus far. Compare that with HAS just 6% off its recent peak, and it surged back above the very round par number Tuesday, a figure it has shied away from somewhat between last July-November.
Strength in a stock is always to be admired, especially when done so on a fragile tape. The price action is trying to convey a bullish message to potential buyers. Below is a good example of that and the chart of TSCO and how it appeared in our 5/23 Consumer Report. It showed good action POST breakout from a cup base on 4/4, and then held firm at both a rising 50 day SMA and the very round par number (since breaking above 100 on 4/5 it did not record back to back CLOSES below it). The best names will always offer an opportunity to add on the way up, and this one is no exception with a possible add on through a 108.08 cup base pivot.