XLP Consumer Staples and PG Procter & Gamble Weekly Charts; Staples Catapult Higher As Economic Fears Escalate

When bad times are approaching, or people think bad times are coming, they flock to the consumer staples. No matter what the economic times, people need soap to wash their face, toothpaste to brush their teeth, hygiene products for unmentionable stuff, detergent to wash clothes, and toilet paper to wipe their fat arses. For decades, when traders think an economic slump is coming, they will buy consumer staples and PG is at the top of the list and it was orgy time with Procter & Gamble stock today. The Times They Are a Changin'. Come writers and critics who prophesize with your pen.

In the 1990's, Keystone had his chest puffed out thinking he was the next Jesse Livermore and was aware of the potential flight to safety that can occur with the staples. A slowdown was on the come so Keystone went into PG big, as a budding speculator would do, on the long side, and boom, Procter catapulted higher and Keystone was rewarded handsomely. Jesse would have been proud. Keystone's head got so big he could barely fit through the doorway. Then, after taking profits and entering a subsequent trade, he had his fat head handed to him on a platter. Live by the sword, die by the sword.

All the consumer stocks are up this week including COST, KMB, KVUE, PG, WMT, MDLZ, TGT, ENR and BTI. Walmart is pumped higher lately on happy talk. These department stores, such as Walmart, Target and Costco, sell the consumer staples that everyone needs in good times or bad. Diapers are another staple and with folks living into their 90's and such, well, let's just say you need diapers when you are born and then in your twilight days. Pain relief products are also considered staples and when times are bad, people are feeling a lot of pain. 

Yinz young folks do not remember the big scandal around PG back in the 1980's. The Procter & Gamble packaging includes the symbol of what appears to be a man on the moon with stars around. Keystone was working in an engineering office at a large Pennsylvania power plant at the time and the secretary (now called administrative assistants) started telling all of us in the office that the PG symbol is Satanic and the company appears to worship the devil. Oh my. Everyone was up in arms swearing they will never buy another Procter & Gamble if they worship the devil. The problem was it was all a hoax.

Poor PG spent years trying to dispel the hoax but there are probably people decades later that still will not buy a Procter & Gamble product.  Here is an article on that saga if you have an interest in reading more about the hoax. 

Anyhoo, checkout the behavior of the charts above at the start of this year. Remember, everyone was super bullish and having fun without a care in the world into January and then the stock market trouble hit in February. Trades sniffed out the trouble coming ahead of time back then. Isn't that interesting? Will that fractal from the start of the year repeat now? Don't forget to buy soap, toilet paper and toothpaste on your way home from work this evening. 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.