What a week! Market breadth has been horrible, sentiment has been very sour, and the Dow Industrials have dropped nearly 1,000 points in just two sessions. Despite the awful market conditions, there have been quite a few safe havens in which to park money in the stock market. Case in point: Altria (NYSE: MO), a stock that has shown dominant relative strength and is actually higher than its close last Thursday.
Take a look at the chart below, and you’ll see the RSI is clocking in at an overbought reading and the MACD is still on a strong buy signal. The momentum indicator at the bottom shows there was a nice chance to buy on a slight dip earlier this month, but the strongest stocks rarely give you a chance to get on board (so if you missed it, don’t fret). Since hitting a low in January, the up trend line shows higher lows and higher highs. Additionally, Altria offers a very nice dividend alternative to bonds.
If the market continues its precarious ways, we like Altria as a solid defensive name.
Take a deeper dive into the chart action on NYSE: MO and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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About Altria
Altria Group, Inc., through its subsidiaries, manufactures and sells cigarettes, smokeless products, and wine in the United States. It offers cigarettes primarily under the Marlboro brand; cigars principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen and Skoal, Red Seal and Husky, and Marlboro Snus brand names. The company also produces and sells varietal and blended table wines, and sparkling wines under the Chateau Ste. Michelle, Columbia Crest, and 14 Hands names; and imports and markets Antinori, Torres, and Villa Maria Estate wines, as well as Champagne Nicolas Feuillatte in the United States.
