During today’s Off the Charts segment, Jim Cramer and I went on a Super Bowl chart blitz. We put four high quality companies from the Seahawk’s hometown of Seattle against four from the Patriots’ home town (err, region) of New England.
Seattle’s lineup included Costco, Nordstrom, Microsoft and Starbucks. New England brought Boston Beer, CVS, Skyworks Solutions and Dunkin Brands to the game.
Who will win, the Seahawks or the Patriots?
Costco: I really like the pullback that the stock has had recently, so I think this could be a good entry point. The stock is in good shape with a robust floor of support.
Boston Beer: The maker of Sam Adams is up 50% since October, but the MACD indicates that the stock could be overbought. I think it needs to take a breather.
First quarter: Seattle – 1, New England – 0.
Nordstrom: The stock has been on an uptrend, and the MACD is flashing a buy signal. Because of the recent pullback, I think we are seeing another great entry point.
CVS: This was one of the strongest retail names in 2014 – it didn’t even budge when the markets corrected in October and December. The fact that it has been running strong points to a lot of institutional buying, but at this point, I think it is becoming over-extended.
Second quarter: Seattle – 2, New England – 0.
Microsoft: This once mighty tech giant got crushed today after a disappointing earnings report. The stock has now fallen below its 50 ma, and I think it will trade sideways for a while.
Skyworks: Talk about a stock that has been on fire! I really like that it has been rallying at high volumes, and even if it does take a much deserved break, I think it is headed higher. Cramer agreed:
“I like this call. Skyworks is in the midst of the connectivity revolution, a theme I want to use in 2015 to replace the domestic oil and gas renaissance.”
Third quarter: Seattle – 2, New England – 1.
Starbucks: With terrific leadership from Howard Schultz, Starbucks just keeps on growing. I really like what I see in its chart, with a bullish crossover on the MACD that indicates there is more upside ahead. Even though it might be overbought, historically, Starbucks can stay that way for months before a pullback.
Dunkin Brands: Dunkin is pretty much the opposite of Starbucks. The name really broke down in December, but even though it’s in a modest uptrend the charts are looking bearish. Cramer agrees; he is not a fan of Dunkin Brands at these levels.
Fourth quarter: Seattle for the win! Seattle – 3, New England – 1.
“Now, that doesn’t mean the Seahawks will necessarily win this weekend, especially if the Patriots’ head coach Bill Belichick can somehow sneak a deflated ball onto the field,” Cramer added.
