Watchlist: Few Strong Stocks

July 6, 2022, 10:17 pm EDT

Few Strong Stocks

The stock market has been shaky since the beginning of 2022. Most stocks failed to stay above their trend lines for short-term (20), medium-term (50), and long-term (200) day-moving-average. The reason is simple: few stocks are able to fight high inflation, rising rates, a slowdown economy, and a warfare background. 

However, there are still few strong stocks available that hold above all trend lines. It illustrates their ability to hold through the first wave of the bear markets. They could become the stronghold for a portfolio in the future. At least, they are worthy of attention for now. 

  • Restaurants: Mcdonald’s Corp (MCD)
  • Auto parts: Autozone Inc (AZO)
  • Discount Retailer: Dollar Tree Inc (DLTR)
  • Defense: Northrup Grumman Corp (NOC)*

* portfolio holdings

These stocks do have their own advantage to hold their values regardless of the economic cycles. We watch them and may consider adding them to our portfolio if opportunities allow. Of course, extra cautious and risk management skills are needed during the declining markets. 

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