After Fridays big +350 pt day the stock market is gaping up this morning about 1/2%.
Of note, Oil and the U.S. Dollar slightly red while most everything else green including TLT.
I still have UPS on as a mean reversion trade and it appears we are most likely looking at an exit today at the close or tomorrows open. Most likely it will be at the close.
On Friday I put on another mean reversion trade in ANET close to the open. The stock proceeded to sell off most of the day but finished strong and is now gaping up about 1% this morning. I put the trade on at 246.47 and it is now trading at 248 premarket. This will be no longer than a 10-day hold.
This morning there is a basket of stocks you might consider either exiting or shorting sometime soon.
Its been awhile but the boycott fever has taken hold again in the U.S. Combine the shooting in Florida with the dysfunctional politics in the U.S. and you now have both sides yelling boycott.
One side is calling the NRA sponsors putting pressure on them to not do business with the NRA while the other sides is calling for boycotts of business’ that discriminate against the NRA.
Just when you thought things could not get any crazier they slip into insanity.
But as we know, when there is insanity there is opportunity. We saw that in the Starbucks short a year ago when the CEO decided it was more important to be a SJW than run the business.
And I think you will see that again this time. I doubt the NRA will take much of a hit. But the business’ that have decided to take action against the NRA may not be so lucky.
Gun owners in the U.S. are a pretty determined group. So when Delta airlines or Avis rent a car speaks out against the NRA you can rest assured their business is going to suffer.
How much? It remains to be seen. My guess is some of these business’ are going to take a significant hit. Just look back at Starbucks if you’re a doubter.
You can easily find a list of the companies that have decided to take this course of action by searching the internet. I assume the list will be fluid. In addition, I would watch to see if any of these boycotts take hold. We are just getting started on this one.
Looking over the group it seems to me that Delta is a top on the list to short. But I have just started looking over these.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
RickJ’s Handicapping Picks