Despite Looming Hurricane, Market Finds Some Stable Ground

The Market breathes a sigh of relief and some hurricane-proof stocks.

Despite the previous carnage of two weeks ago, I noted a ray of sunshine: support was nearby.  Fortunately, that support held and despite the warnings of the bears, the market had a decent week.

Of course, before we get too excited, you’ll note that all the market did was…continue to move sideways!  (like is had been the past few weeks.)

But for now, sideways is better than down, and given everything that’s been thrown at stocks, it may be the best we can hope for.

Market aside, the big news – at least on the East Coast – is Hurricane Irene. And while it’s always tricky thinking about making money from a natural disaster, the trader in me can’t help but look at opportunities.

The two that jump out are the usual suspects, with the first being Caterpillar (NYSE:CAT). Yes, there will be cleanup. And yes, that will cause construction. Will it cause the purchase of NEW tractors and such? That’s the assumption, but in this case, just wait to see if CAT closes above its downtrend line before purchasing.

The other area to consider are supermarkets.  I’m big on SWY since that’s where I shop, but I know many of you visit your local Kroger (NYSE:KR).  This chart is very similar to that of CAT (and the market in general), so buy if it closes above its downtrend line.

Here’s hoping this is all ado about nothing and all we see is some heavy rain.  Make sure to tune into Fox, though, for all the latest coverage.