Sodas, Burgers and Dirty Diapers ... and 4 New Buys

As of Thursday these two blue chip stocks, Coca Cola (KO) and McDonald's (MCD), were the best one month performers on Wall Street, and meanwhile Procter & Gamble (PG) just hit its 52-week high at $67.72 soon after the ringing of the opening bell.

When we sold off more than half of our portfolio holdings back in early August to protect our profits (from 15 to only 6 stocks!), we kept 2 of the 3 above mentioned companies in our Dow Jones Trader Portfolio, and today we are benefiting from their new record highs with a gain of +22%.

While almost all the financial talking heads and experts have been too busy for sometime debating whether the "Fed" will lower its benchmark rate or not come Tuesday September 18, the "trend" simply kept us invested in what many refer to as the boring defensive stocks ... In other words, the current sub-prime crisis presumes a doomsday scenario where if people continue to lose their homes and land in the streets, chances are they will still consume a $1.00 Big Mac, supersize on a diet Coke, slap-on some shiny white Pampers diaper on their bottomless kid ... and then spark up a Marlboro while fueling up their SUV at the pumping station.

(In case you're wondering, the ticker sequence to this award winning apocalyptic film would be; MCD, KO, PG, MO & XOM)

On a more serious note now … interestingly today, for the first time since early summer 2007 the stock market confirmed a trend reversal for several of the DOW component stocks - shifting from a negative trend to a positive.

Whether this trend reversal is real or setting up to be a fake-out, it remains to be seen. This type of action is personally more interesting than whether come next Tuesday Mr. “Fed” Bernanke will show up in a Disney or Wal-Mart tie. The timing can also prove to be lucrative.

Having said that we now finally commit some of our 50% cash to work in buying some positions.

For now we are establishing positions in:

C - Citigroup, Inc (NYSE)
JNJ - Johnson & Johnson (NYSE)
MCD - McDonald's Corporation (NYSE)
MSFT - Microsoft Corporation (NASDAQ GS)