What I find most disturbing is the leadership being offered by stocks like Proctor and Gamble (PG), Coca Cola (KO) and Pepsi (PEP). These are great companies to be sure but also a clear indication that investors are losing their appetite for risk. Is a recession far off? I’ll leave that to the economists but market action is sure pointing in that direction.
According to Stockcharts Performance function, the best performing sectors over the last week are the consumer staples (-0.61%), Health Care (-1.1%) and Utilities (-2.78%). Here are the respective charts.
Consumer Staples
Health Care
Utilities
And here are some charts from the larger, safer companies.
J&J
McDonalds
Phillip Morris
P&G
Pepsi
When companies like these are market leaders, you know traders are getting concerned.
