Eoin Treacy's view
Consumer companies - The global population went through 7 billion sometime this month. The economies of the world's population centres are growing faster than their populations. Their governments are also cognizant of the fact that if they want the status quo to persist they must succeed in raising the average standard of living. As a result, the middle class, particularly in Asia, is expanding. Companies with global reach, that dominate their respective niches, have brand recognition, possess strong cashflows and pay reliable yields are outperforming. They are leveraged to a secular theme - The Greatest Urbanisation in History.

I reviewed a number of companies yesterday whose fastest growing revenue streams originate in Asia. I also posted a list of companies with more than 20% of their revenue sourced in Asia on Friday.

Estee Lauder is another such company, and particularly leveraged to the growth of the cosmetics market aimed at men. The share found support in the region of the 200-day MA from August and soared to $120 earlier this month. It is currently unwinding the short-term overbought condition but a sustained move below $95 would be required to question the consistency of the medium-term uptrend.

North Asia, Greater China and South Asia/Pacific represent the majority of Nu Skin Enterprises (anti aging creams) revenues. The share is also unwinding a short-term overbought condition relative to the 200-day MA and a sustained move below $40 would be required to begin to question the consistency of the medium-term uptrend.

Asia Pacific represents Herbalife's (nutrition & weight loss) largest market. The share had become quite overextended relative to the 200-day MA when it encountered resistance in the region of $60 from August and has since reverted to the mean. A sustained move below $50 would be required to question the consistency of the medium-term uptrend.

Developing Markets is Reckitt Benckiser's (household goods) fastest growing division. The share is a European Dividend Aristocrat yielding 4.2%. It was among the first to hit new highs in 2009 but has been largely rangebound since early 2010. It is now returning to test potential support at the lower side of the 28-month range and a clear upward dynamic will be required to confirm the return of the demand in the 3000p area.