Before the sell-off from Trump Turmoil, there was the sell-off ahead of the Easter weekend that looked weighty enough to deliver an extended breakdown below the 50-day moving average (DMA) for the S&P 500 (SPY). Buyers came storming back after that weekend. Out of curiosity, I used SwingTradeBot.com to identify the strongest stocks of the period as defined by stocks which hit new 52-week highs both the previous time the S&P 500 (SPY) hit an all-time high and the day after that April breakdown. I was quite surprised to find the list dominated by utilities, REITs, and homebuilders. I narrowed that list down to four stocks that looked most attractive as a buy on the next market sell-off: in order of descending interest: IHS Markit Ltd (INFO), Interxion Holding N.V. (INXN), ILG, Inc (ILG), and Energizer Holdings, Inc. (ENR).
My surprise increased in the aftermath of last week’s sell-off. ENR was the ONLY stock of these four to dip during that sell-off, and ENR was already in the middle of an earnings related pullback. INFO dipped slightly and then ended the week at ANOTHER 52-week high. INXN traded UP during Wednesday’s sell-off and finished the week at a new (marginal) 52-week high. ILG also ended the week at a new 52-week high with a Wednesday pullback that is barely perceptible in the middle of a strong and persistent uptrend. Here are the stock charts…
Energizer Holdings, Inc. (ENR) experienced a severe 50DMA breakdown following its latest earnings report. Last week, ENR reversed all the gains following February’s report. The uptrending 200DMA MAY have provided approximate support, but ENR is still trapped inside a downard trending channel formed by its lower Bollinger Bands (BBs).
Interxion Holding N.V. (INXN) completely ignored last week’s turmoil. It looks poised for a fresh breakout.
IHS Markit Ltd (INFO) is as bullish as ever with a fresh breakout to a 52-week high.
ILG, Inc (ILG) is still sprinting ever higher with barely a pause to recognize last week’s turmoil.