Campbell Soup Company (CPB-N)

A lot of bond proxies, including staples, have been under pressure. If CPB can rise above its current trend channel, we'd see a new uptrend. That's a concern, because when things go great, then people don't need to buy staples. Also, if he sees CPB move higher and break its downtrend, then it would tell him that something big is happening, that portfolio managers are becoming cautious.

Good support at $40 and currently at $46. Not what it used to be and it's very volatile. $40 is your downside protection. Volatility and volumes have spiked. Looks like a good stock here. He would slowly enter it here.

Takeover target? If this rumour had juice to it, this stock would be up higher, but an interesting idea. If there is one sector investors are complacent on, it is consumer staples. In these companies, investors are hiding in the balance sheet looking to milk the dividends because they can’t find any yield in bonds. The fact that those big stocks have low volatility and the ability to grow their dividend, is very attractive. He would avoid this stock.

In the consumer staple sector. There is a reduction in barriers to entry within packaged foods. He would rather be in flavouring companies, such as Fruteron (?).