To further pair off against my current shorts, I went long Family Dollar inside 12631 just now, at $69. Like my Dollar General long, it is a 1/2 starter sized position, with the intention of adding only on further strength up and out of their daily chart consolidations. Note today’s uptick in buy volume, at the bottom of the daily chart, below.
I am running both longs and shorts here, likely into The Fed and the subsequent reaction.
My thesis continues to be that the dollar store sector is ripe to benefit from a rotation down from some of the (aspirational) upper middle class retail stocks. If they are buying dollar stores, maybe trouble ain’t far behind?
My stop-loss on FDO is below $67.
Some M&A activity in the space would be grand.
More on my video market recap after the bell…
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Is there any reason you prefer FDO and DG to DLTR ? (because I have DLTR)
Thanks Chess !
I am also long DG. I like DLTR too.