Input prices continue to rise and are being passed on to consumers. And it is likely broad based.
General Mills recently stated they would have to increase prices on many staple products. This relates to recent price surges in fuel, packaging, and shipping costs.
Additionally, this has put a strain on not only food supply companies, but many small and large companies throughout the pandemic.
With the stock market’s recent push to new highs in two of the major stock indices, has the constantly changing playing field opened new investment opportunities?
If so, which symbols and sectors offer the best reward?
Three areas we are currently watching are:
- Back to work/school trend
- Precious metals
- Soft commodities
The back-to-work trend builds off increasing demand for clothing and self-care products as more people re-enter the workforce. Check out these stocks:
For that reason, we are keeping an eye on L brands (LB) along with Estee Lauder (EL).
EL is currently sitting near highs and needs to clear and hold over $318.34 for a successful breakout. If Estee Lauder’s stock (EL) is unable to breakout and moves lower, we can look for a pullback close to its next support level at $309 or the 50-day moving average at $303.
L Brands stock (LB) on the other hand made a successful breakout. For an active trade one could risk off the Wednesday’s low at 71.08 which is under the breakout level of 5/18 at $71.99.
Looking at precious metals such as gold (GLD) and silver (SLV), both have gone through recent selloffs and are now offering low entry points.
With GLD looking the strongest, each made a reversal pattern with 60+ day low on 6/29 followed by a close over the prior day’s range on 6/30.
The third space we are watching goes directly to the beginning of the supply chain.
Soft commodities such as sugar (CANE), corn (CORN), and soybeans (SOYB) to name a few are on our watchlist.
These offer a hedge against an inflationary period since no matter what unfolds next in the market, people will still need to eat.
With that said, we wish everyone a happy 4th of July and a restful long weekend!
Watch Mish make an appearance on Fox Business Cavuto: Coast to Coast, Cheddar News, and RT: Boom Bust!
Cavuto: Coast to Coast 7-1-2021
Stock Market ETFs Trading Analysis & Summary:
S&P 500 (SPY) New highs. 425.46 support.
Russell 2000 (IWM) Main resistance at 234.
Dow (DIA) Next resistance level 348.60.
Nasdaq (QQQ) Holding near highs.
KRE (Regional Banks) 65.07 new support. 68 choppy area.
SMH (Semiconductors) Like this to hold over 257.
IYT (Transportation) 257.67 new support.
IBB (Biotechnology) 159 support area.
XRT (Retail) 96.23 support.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
