Stocks were hit hard on Friday and again early Monday, but Kroger (KR) bucked the selling pressure with a bullish engulfing on Friday and further gains early Monday. Even though the overall trend for KR remains down, a double bottom could be forming as the stock gets its second bounce in the 34 area. The intermittent highs mark resistance at 37 and a close above this level is needed to confirm the double bottom. KR came to my attention because its SCTR surged over the last two days. This is because stocks tanked and KR bucked the selling pressure. KR is part of the consumer staples sector and represents a defensive play.
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--Arthur Hill CMT
Plan your Trade and Trade your Plan
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