Greg Harmon of Dragonfly Capital outlines trading ideas on two summer food favorites.
We are in the height of the summer grilling season, with the temperatures reaching into the 90s. Summer grilling means a ton of pictures of steak, chicken, and fish on Instagram. But when the main meal is done, the search begins for that perfect stick to roast marshmallows and make Smores.
Luckily, it only takes trades in two stocks to cover this backyard dessert staple of the summer: Kraft Foods (KFT), maker of both Jet-Puffed Marshmallows and Nabisco Graham Crackers, and Hershey Foods (HSY) for the chocolate. These stocks seem to know the season is here. Take a look.
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Kraft Foods (KFT) is breaking higher after finishing a "W" pattern. A continued move over 40 gives it a target of 43 to start. It does not have to stop there though. In fact, pulling out to the Point and Figure Chart (three-box reversal with $1 box size) gives a price objective of 68.50.
Rounding out the trade, Hershey Foods (HSY) is building a bull flag over 71.40 with a top at 73. A move over that flag top brings a target of 76 on a Measured Move.
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Again, with the lack of a time constraint, the Point and Figure Chart has a bullish price objective much higher, at 98. You could make a lot of Smores if you carried both of these stocks to those long-term price objectives.
Greg Harmon can be found at Dragonfly Capital.
