Yesterday’s Daily mused about what will untie the Gordian Knot holding back the market from either crashing or rallying.
While we wait, it feels like a great time to plan for future trades.
I have been all over the “Vanity” trade, based on the assumption the diet drugs lead to bringing in a new wave of consumers.
Let’s focus today on 2 stocks I am watching very carefully.
1. Nu Skin-(NUS)
Some stats:
Enterprises offers a range of popular products across skincare, wellness, and beauty.
- Company Overview:
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- Nu Skin Enterprises is an American multilevel marketing company.
- It develops and sells personal care products and dietary and nutritional supplements.
- The company operates under the Nu Skin and Pharmanex brands.
- Its products are sold in 54 markets worldwide through approximately 1.2 million independent distributors.
- Nu Skin aimed to create skincare and nutritional products without unnecessary fillers, following the philosophy of “all of the good, none of the bad” in their formulations.
- Global Presence:
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- Nu Skin operates in nearly 50 countries across Asia, the Americas, Europe, Africa, and the Pacific
2. COTY
- Founding and Overview:
- Coty (NYSE:) Inc. is an American multinational beauty company founded in 1904 by François Coty.
- It develops, manufactures, markets, and distributes fragrances, cosmetics, skin care, nail care, and professional and retail hair care products.
- Coty owns around 40 brands as of 2024.
- Revenue and Divisions:
- Coty is one of the world’s largest beauty companies.
- It generated $5.3 billion in revenue for the fiscal year 2022.
- The company operates three divisions:
- Consumer Beauty: Focuses on body care, color cosmetics, fragrances, and hair coloring/styling products.
- Luxury: Offers luxury cosmetics, fragrances, and skin care products.
- Professional Beauty: Services beauty salon and nail salon professionals.
- Brands:
- Coty owns approximately 40 brands, including Bourjois, Calvin Klein, Gucci, Hugo Boss, and Kylie Cosmetics (51% ownership).
Kylie Jenner and Kim Kardashian are part of Coty’s acquisitions to help Coty “celebrate and liberate the diversity of beauty.”
Now, we look at the charts.
NUS is in a Recovery Phase above the 50-DMA.
The stock is on par in Triple Play or Leadership against the benchmark.
Real Motion shows a mean reversion sell signal but in a bullish momentum divergence.
COTY is in a bearish phase.
It is well underperforming the benchmark.
The stock looks like it is having a mean reversion to the buy side.
Most compelling potential key reversal happening with any gap higher leaving a potential island bottom.
Both these stocks look promising, but like I wrote at the top, the market will have a lot to say about how we approach these investments and when.
ETF Summary
- S&P 500 (SPY) Apple helped this index stay near ATHs
- Russell 2000 (IWM) 200 broke briefly, so now that is a big pivotal point to hold
- Dow (DIA) 40k resistance
- Nasdaq (QQQ) Apple (NASDAQ:) helped this too stay near all time highs
- Regional banks (KRE) Watching the range 45-50 CAREFULLY
- Semiconductors (SMH) NVDA red so this slightly red
- Transportation (IYT) 63.80 area now important support with 66-67 the area to clear for health
- Biotechnology (IBB) 135 support 140 resistance-big eyes here this week
- Retail (XRT) 75-80 trading range to break
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Ended the week on critical support 76.85 area-so watch carefully this coming week
#Stocks #Create #Trading #Opportunity
