Have the Consumer Staples Peaked?

This afternoon, the leading consumer staple stocks are declining sharply lower on the trading session. It is important to note that this important industry group has been leading the major stock indexes higher since August 2011. Most of the leading stocks in this sector pay a dividend and many investors own these stocks for the income that they provide. It seems that many investors now believe that these stocks are fully valued at this time. The dividend yield for the leading consumer staples stocks is just over 2.0 percent, this is now the same yield that the 10-year U.S. Treasury Note is yielding. Could this be the catalyst for the decline in the consumer staple stocks?

Some of the leading consumer staple stocks that are declining lower today include Colgate-Palmolive Co. (NYSE:CL), Kimberly-Clark Corporation (NYSE:KMB), Procter & Gamble Co. (NYSE:PG), and The Clorox Co (NYSE:CLX). All of these stocks have sold off from the recent highs with an increase in volume. This is usually an indication of lower prices ahead for the sector. When leading sectors begin to roll over with volume it could signal problems will occur with the major stock indexes.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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