Thursday, June 20, 2013

Weirdest Market Indicator Yet: Using Hershey Chocolate to Predict the Market

From CNBC:  Life may be like a box of chocolates, but how about the stock market? Brian Stutland of the Stutland Volatility Group believes that chocolate sales can tell us a great deal about where the market will go next.

"Your basic thing that everybody loves is chocolate," Stutland said. "If chocolate sales are falling—if you hate chocolate—you definitely hate real estate or whatever big-ticket purchases you want to make."

So to get a jump on the market's next move, Stutland zeros in on one particular company: Hershey.  In addition to capturing chocolate sales, "Hershey usually trades at a pretty low multiple," said Stutland, who is an "Options Action" contributor. "If the multiple starts to get overextended, and investors start to take the multiple down, that is probably going to happen across the marketplace. So the market will follow the mean trend" that is first set by Hershey…..

 Read all about it at

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