PG Procter & Gamble Monthly Chart; Negative Divergence; Upper Band Violation; PG Likely Printed Multi-Month and Multi-Year Top

Procter & Gamble is about to have a proctology exam. The monthly chart is overbot (stochastics) with universal negative divergence across all indicators. Price tagged the upper standard deviation band so a move to the middle band at 83 is on the table.

The ADX is trending lower for the last four years and is sub 25 so the trend higher in PG is not a strong trend. The trend higher was strong in 2014 and 2015 and price tried to eke out a strong trend in 2017 but it faltered.

Procter, a consumer staple (XLP), is an interesting play. Typically, consumer staples, utilities and other dividend stocks, telecoms, REIT's, are viewed as defensive plays when the markets become dicey. When stocks sell off, many traders will run into consumer staples as a place to hide out. This is old school thinking and does not account for the non-stop obscene central banker market intervention.

In this modern-day era of central banker Keynesian money-printing, since March 2009, the Fed, ECB, BOJ, BOE, PBOC, and many other global central banks have destroyed price discovery and the expected business, economic and market cycles. All assets are pumped higher including stocks, bonds, art, collectibles, real estate, vineyards and antique cars and no one truly knows what anything is worth anymore. The expected business cycles are thrown out the window and no longer applicable. The world is awash in central banker liquidity. Those running into consumer staples thinking they are smart are only covering themselves with a fig leaf. Consumer staples and all other stocks will collapse together when the markets begin moving south again.

The drop down to 83 would be a meaty move lower. Despite the buoyancy and subtle strength that may appear in PG due to people believing in staples, Keystone will likely short PG on bounces going forward. PG likely just printed a multi-month and multi-year top. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.