tradethepoolpool ads

Breaking Out: AXP, JNJ, NKE

The Stock Market is trying to break out again, it almost seems like a broken record and something investors expect, and although this obviously will not last forever it is pulling stocks higher too, and three of these are threatening to break out today. 

Excluded from this observation is a detailed market analysis, but we must also be aware of the risks.  Although we can all argue that the market is in an asset bubble we also know stocks are pressing higher, and fighting the trend is a very hard thing to do.  We should respect the risks, and use integrated risk controls and stop losses for every trade, so included in the exact trading plans for these stocks that we have provided to clients are those integrated risk controls as well.

Using the longer term stock filters offered by Stock Traders Daily these three stocks are threatening to break out beyond our longer term resistance levels.  Johnson and Johnson (NYSE:JNJ), Nike (NYSE:NKE), and American Express (NYSE:AXP) are all trying to break out, and if they do our analysis will point to higher levels for these stocks, but if these stocks are bought they should only be bought with integrated risk controls associated with the transaction.

For American Express one might argue that the breakouts are helped by a 15% increase in the quarterly dividend, Johnson and Johnson increased its dividend by 8.2%, and Nike had upgrades from Barclays and UBS recently that surely helped that stock as well.

Without consideration to the asset bubble that we seem to be in today, investors are interested in buying companies that are increasing dividends and who are being supported by large institutions, and these companies fit that demographic.  Be cautious given what is happening to the market, be responsible in managing risk, but if these stocks break out they can move higher.

Triggers may have already come
Support and Resistance Plot Chart for

Blue = Current Price
Red= Resistance
Green = Support

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.

Our Market Crash Leading Indicator is Evitar Corte.
  • Evitar Corte warned of market crash risk four times since 2000.

  • It identified the Internet Debacle before it happened.

  • It identified the Credit Crisis before it happened.

  • It identified the Corona Crash too.

  • See what Evitar Corte is Saying Now.

Get Notified When our Ratings Change: Take a Trial