This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
Do you prefer the classic National Day songs such as Home by Kit Chan and Where I Belong by Tanya Chua or the more modern songs such as Here We Are by Charlie Lim, Kit Chan, and The Island Voices?
Although I’m not that old, I prefer the classic National Day songs probably because they were frequently sung in school during my days.
As we commemorate and celebrate National Day, let’s continue to preserve the peace and uphold justice. These 2 qualities are getting rarer, as demonstrated by the war in the Middle East and unrest in other parts of the world.
Since Iran and the US paused fighting over the weekend, the US stock market has been rising. How far will this rise last for?
I wish to have a crystal ball.
Thankfully, I have a trading system that has been reliable in tiding me through. As I used this trading system and software to scan for stocks, these 2 defensive stocks caught my attention.
But before I share the stocks that I’ve uncovered, you may want to review the performance of the 2 stocks shared in July.
Coca-Cola (NYSE: KO)
Source: coca-colacompany.com
1. About the Company
Did you know that Coca-Cola was invented in 1886 and marketed as a nerve and brain tonic then?
During its 140 years of existence, the company has innovated to create its iconic contour bottle. The drink has also been synonymous to festive seasons, meant to accompany feasts and consumed with friends.
They were highly successful marketing and innovation campaigns which enabled global expansion and into other beverage types such as fruit juices, energy drinks, and coffee.
Having established a strong reputation, is it a good idea to be buying its shares for a position trade?
2. Position Trading (Daily)
Looking at the chart of Coca-Cola, can you tell that traders and investors are highly optimistic of the company’s performance?
This can be easily inferred from the strong uptrend of its share price, which can be told by comparing the number of blue candles (outlined or solid) against the number of red candles (outlined or solid).
You won’t need to put on Moving Averages or draw trendlines to help you decide. When there are more blue candles, it indicates that the stock is in an uptrend.
Seeing that the shares of Coca-Cola are in a solid uptrend, I’ll want to be on the lookout for a buying opportunity.
This brings me to the 2 proprietary indicators I have on my chart – the green arrow and Trend Impulse Factor.
Do you notice a green arrow above the latest candle of Coca-Cola?
This tells us that a fresh bullish move is here!
Before I get carried away, let’s have a look at what the Trend Impulse Factor tells us.
Its bar isn’t dark green in color yet.
What does this mean?
This suggests that this fresh bullish move might not sustain for now, thus I’ll want to wait for it to turn dark green before buying its shares for a position trade.
Sensient Technologies (NYSE: SXT)
Source: sensient.com
1. About the Company
Founded in 1882, the company was originally a distillery and yeast maker.
After several rebranding and restructuring exercises, the company switched its focus to high-value sensory science and specialty ingredients.
The company enjoyed tremendous success, and went on an acquisition spree, acquiring over 20 companies, and in the process, expanding its reach beyond the US.
As Sensient Technologies continues seeking growth, should I buy its shares for a position trade?
2. Position Trading (Daily)
Without the need for Moving Averages or other charting tools, can you tell that the share price of Sensient Technologies is in a mighty uptrend?
This can be easily inferred from comparing the number of blue candles (outlined or solid) against the number of red candles (outlined or solid). When the majority of the candles are in blue, the stock is in a strong uptrend.
To increase your chances of success, look for a buying opportunity.
But, timing is important. You don’t want to get stuck with a stock that doesn’t bring you a return.
To help you better time your entry, 2 proprietary indicators have been formulated. They are the green arrow and Trend Impulse Factor.
With the sight of the green arrow under the latest candle of Sensient Technologies, this is a fresh bullish move.
Will I rush to buy its shares for a position trade?
Let’s take a look at what the Trend Impulse Factor indicator suggests.
Do you see that the color of its bar is dark green?
This means that this fresh bullish move is sustainable. Thus, I’ll want to buy its shares for a position trade.
Conclusion
Source: unsplash.com
With increased uncertainty, due to the possibility of an interest rate hike, and the war in the Middle East, the US stock market is favoring defensive stocks such as Coca-Cola and Sensient Technologies.
These stocks were discovered in an instant using this trading software – TradersGPS (TGPS).
Both stocks are enjoying a fresh bullish move.
However, the rise in the shares of Coca-Cola might not be sustainable unless the bar of the Trend Impulse Factor indicator turns dark green. Hence, I would like to wait for its bar to turn dark green before buying them for a position trade.
On the other hand, Sensient Technologies’ shares look ready for a position trade.
Trading stocks without a proper system can be highly risky. This is why the TradersGPS (TGPS) system was created. The indicators will help you determine if a stock is ready for action to be taken. You won’t have to feel in the dark and make wild guesses.
What are your thoughts?
Share your thoughts with me below!
