How many times have we seen the market or a specific sector get lit up, everyone plant flags in it, saying it’s dead, only to see a miraculous revival?
Back in December everyone was bearish on oil. Had you gone long then, you made 50% on your money. Over the past month, oil is up 25%. Whether oil goes up from here is immaterial. What’s important to note is the market’s resilience in the face of horrifying tragedy.
So now the question is, what’s next?
Well, if you misers had a subscription to the single best market intelligence platform, otherwise known as Exodus, you’d know the answers. I’ll give you a freebie.
When oil was going down, what was going up? Grocery stocks.
Stocks like WFM, SVU and KR were hitting new highs. Since then, they’ve corrected (Extra Delbert Grady), leaving short term traders in tatters, in the street naked, looking for their mothers.
Homebuilders have gotten AC-10 Gunship’d over the past month, with names like RYL, WLH, HOV and PHM down more than 15%. In an environment where the dollar reigns supreme, US employment and wage growth are bullish, it makes no sense for the property market to be this weak.
These are just two instances of industries under pressure that might prove to be profitable for adventurous and entrepreneurial dip buyers.
All that aside, markets look strong today, like Borat.
Top picks: AGIO, FINL, N