Autonomies that have completed mean reversions
Eoin Treacy's view
From late March we highlighted that a number of the shares we have dubbed Autonomies
for their global reach, strong brand recognition, healthy balance sheets and
often reliable dividends had become overextended and were susceptible to a mean
reversion. While some of the highest fliers are still in a reversionary process
a number are beginning to show signs that they have found support in the region
of their respective 200-day MAs and are beginning to rally once more. A number
of others appear likely to break out of their respective ranges. I thought it
might be instructive to highlight the relevant shares.
McDonalds,
Cisco, Bristol
Myers Squibb, Eli Lilly, Sanofi,
Merck and GlaxoSmithKline
all recently found support in the region of their respective 200-day MAs.
PepsiCo,
Google, Unilever,
Nestle, Heinz,
Johnson & Johnson, Reckitt
Benckiser, LVMH, Compagnie
Financiere Richemont, BMW, Christian
Dior and Air Liquide are all potential
breakout candidates having spent a reasonable length of time ranging mostly
above their MAs.
Nike,
IBM, Novellus
and Qualcomm all found support this week
following at least partial reversions towards their respective means.