Buy Alert! Top Consumer Staples Stock Set To Spike

May 14, 2020
By Vlad Karpel

RoboStreet – May 14, 2020 

Balancing The Risks of Reopening And COVID-19

There is a real tug-o-war at work within the varied forces of the market. The bulls are pressing for back-to-work and that going forward will involve living with COVID-19 at some level regardless of testing until a vaccine is discovered. The bears are fearful that opening the economy too soon, too fast, is going to invite a resurgence of viral caseload and hospitalizations. 

What we do know is that it is too early to garner any data that proves either side’s case, with a high focus on Georgia and Tennessee that were the first states to open. It’s a bit like being in the middle of the twilight zone, wondering and waiting. And that’s just how the market is behaving – wondering, waiting, and gyrating. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

Fresh talk of a phase four stimulus package being floated by the White House put a bid under the bank sector yesterday that stemmed what was turning out to be another waterfall sell-off session. That and speculative rumors the Goldman Sachs was looking at acquiring Wells Fargo was making the rounds. FAANG and MAGA stocks were lagging on the day after leading the market’s torrid rally off the March 23 low. 

Regardless of the one-day bounce in the financials, XLF has broken its recent bullish trend, as has the industrial XLI ETF. Technology and Healthcare sectors, most recent leaders, also contributed to the sell-off. The situation has not changed and the current rally is losing momentum.  The market can potentially retest $270 level in the next two weeks.  The next few trading sessions will be important, as the bulls’ conviction will be tested for the first time since the March sell-off. 

Dollar and Treasury have been trading in a well-defined range. At this point, I expect only short-term pullbacks and it is only a matter of time for SPY to trade above 200-day MA ($300 level by end of May/end of June).    

I expect the market volatility and the three percent daily market moves to persist.  At this point, I believe we have set the bottom (market can overshoot support and resistance levels especially when VIX is elevated).   I believe the worst part of the sell-off is behind us.  Please monitor VIX level as current levels are above the historical average.

My strategy is to buy 5-10% market corrections. Based on our models, the market (SPY) will trade in the range between $270 and $310 for the next 4 weeks. 

With the market having pivoted to a more defensive posture, we’re seeing strength re-emerge in consumer staples as a sector of choice. XLP is loaded with Dow component Proctor & Gamble (PG) heading the list of Top 10 Holdings. 

Sitting in the #2 position that is flashing some “higher” readings on my AI-driven Seasonal Chart for the next 20, 30, and 50-day periods.


The company reported solid first-quarter results and looking at the 3-year chart of Pepsi, the stock remains in a long-term primary uptrend: sitting just above its 50-week MA and on the cusp of an upside technical breakout if it can clear $135 on a sharp spike in volume. This is a high-reward/low-risk blue-chip set up that I’ll be considering for our RoboInvestor Portfolio in the days ahead. 

In the midst of the rally off the March 23 low, our RoboInvestor Portfolio has booked some gains on the way up while still maintaining positions in leading blue-chip stocks like Abbott Labs (ABT), BlackRock Inc. (BLK), CVS Health Corp (CVS), Dominion Energy (D), Cisco Systems (CSCO) and Target Corp. (TGT). 

Against a market landscape where earnings season is winding down, the chatter of more stimulus is getting traction, deteriorating economic data is crossing the tape on a daily basis, it’s my view that has some agnostic AI tools at one’s disposal is “essential” for navigating through these fluid and uncertain times. 

Consistency is the name of the game for growing wealth over time. Our RoboInvestor track record going back just over two years is simply phenomenal. Our Winning Trades Percentage is an amazing 87.59%. When you can make money investing with that kind of consistency, the path to growing your portfolio is clearly defined. 

Take the guesswork out of investing and bring the power of AI into your portfolio for short and long-term results. Become a member of RoboInvestor today and start making super-intelligent trades tomorrow. I’ve developed and coded the algorithms the crunch the data to generate the most timely, high-quality trades available to investors anywhere. And my investment capital is committed to each and every trade with yours. 

We’re about to enter what is historically the most difficult time of the year to make money in the stock market – namely the summer months. And with all that’s going on with COVID-19, the Fed, the upcoming election process, China and the vacuum of data available from traditional financial media outlets, we all need a high-tech advantage to steer clear of trouble and pounce on truly profitable opportunities. RoboInvestor is that high-tech edge the keeps on winning and winning. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.

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