As the S&P 500 finally breaks through with a key support level of 5,850, and the formerly high-flying “Magnificent 7” stock is more like the 2025 “MEAGER 7”, where can investors get rid of this market uncertainty? We will focus on three stocks, which have three in common: They are in the defensive sector, tend to perform well in bear markets, their dividend output is higher than the S&P 500, and have a compelling technical profile. First, let’s look at the health care sector, which is actually the highest performing S&P 500 in 2025. While other stocks in the health care sector have grown stronger so far in 2025, we focus on Bristol Myers Squibb Co. (BMY) as it is currently working through the merger model. This lateral pattern began last October, and soon after, BMY went bankrupt at the $54 resistance level in early 2024. At a clear resistance around $61, a breakout above this price will mean an upward resolution to this side trend, and then the BMY will be above the two upwardly sloping moving averages. With dividend yields just over 4%, and the price trend is close to a breakout point, we can see a strong combination of strong price performance with the health dividend component of this emerging healthcare name. The second best industry in 2025 is the consumer staple food, and the performance of the Tobacco Group can be traced back to mid-2024. Although other tobacco names have experienced stronger price action, we see British American Tobacco (BTI) as a convincing option because of its recent price support gap gap. BTI occupied a higher distance in mid-January to reach a new 52-week high and traded above $42 last month, then lowered the gap after quarterly revenue summons. Miss Income lowered BTI by about 13% to its 50-day moving average, which again served as a key price support. The RSI value for the 50-day successful test was about 40, confirming that BTI is still in a bullish stage. Given the recent pullback, and the dividend yield is slightly above 7%, we see it as a compelling chart within the strong sector. Utilities become a growth trade in 2024 driven by the incredible demand for power from artificial intelligence and other emerging technologies. American Electric Power Co. (AEP) stock has recently risen to a new 52-week high, while S&P 500 and NASDAQ share prices have dropped below key support levels, which translates into relative performance lines at the bottom of the chart. The breakthrough of resistance of $102 last month indicates a new upward phase during the seven-month merger. Now, the AEP is located at two upwardly sloping moving averages along with strong price momentum, increasing relative strength and dividend yields by about 3.4%. As broad market indexes show obvious signs of fatigue, while previous leader names start to struggle, savvy investors look for stocks that show strong relative strength and good dividend yields. These three names for the defensive department can provide opportunities to outperform performance during a period of uncertainty in the market. – David Keller, CMT MarketMisbehavior.com Disclosure: (None) All opinions expressed by CNBC Pro contributors are their opinions only and do not reflect the opinions of CNBC, NBC Universal, their parent company, their parent company or affiliate company, and may have previously been circulated on television, radio, internet, internet, internet or another medium. The above is subject to our terms, conditions and privacy policies. This content is for informational purposes only and does not constitute financial, investment, taxation or legal advice or advice on purchasing any guarantee or other financial assets. The content is general in nature and does not reflect any individual’s unique personal situation. The above may not be suitable for your specific situation. You should strongly consider seeking advice from your financial or investment advisor before making any financial decisions. Click here for the full disclaimer.
Three defenses excel when the market trembles | Real Time Headlines
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