We’re getting cheap.
I’m picking up some trends under the radar in companies that provide discounted products and other cheap crap. It appears nothing will stop Americans from shopping- not a failed bank, maxed out credit card, debt collectors, whatever. We just love to spend. It’s a habit, or let’s just say, it’s America. You can’t stop us from spending money! We are a modern day epicurean society. Oh well, “let us eat, drink, party party party because tomorrow we will die.” Okay, maybe not that extravagant, but when you figure the banks are going to die, why not just enjoy the money while you still got it. It’s wrong, it’s all wrong, but that’s where we’re heading. When will we learn?
Anyway, I already notice a few trends that show the “hidden sentiment” of society…
Trend: continuing education stocks are going up
Theory: Unemployment is rising, so people, even old 40-something-year-olds have to learn a new trade. Or the more optimistic feel that this is their chance to change their career and move on to another field. That’s cool.
Trend: Home foreclosures going up, banks going down
Theory: We are liars. We lie to ourselves, to the loan officers, to the banks so that we can live a lifestyle we can’t afford. Ooops. We’ll lie just so we can shop.
New trend: Mini-bulls in discount stores?! Check out the accumulation in DLTR and ROST. Last time I checked DLTR’s earnings was exploding. It’s now a fast riser on the IBD 100. Then there’s Ross (ROST). Ladies and gents, these are companies that sell stuff for cheap. I won’t lie, I bought a travel bag that holds my bathroom stuff from Ross. It was like $12 or something ridiculous for a good quality brand. I even bought some socks- got a pair of soccer socks for $1. Sheesh! I can use them then throw them away and still save money than if I shopped at Nike Town. Anyway, all I’m saying is that when these cheap stores are having beautiful earnings, volume accumulation, and bullish price patterns, then there has to be an explanation in society. If we can’t afford the “suggested retail price”, then why not get it for less? Why not get it for a $1! Lol.
Anyway, here are the “discount stores” that are approaching 52-highs. Love the volume accumulation on them all. So far, these stocks are the few that have not suffered from our late correction. These stocks are only a few examples, but the sort of illustrate my point. Can you sense the slight changes in your community?
DLTR, ROST, NDN, FDO
Good stuff Gio. The Power Dip picked up NDN early this week and will be selling it soon.
How much you selling NDN? …99 cents!
Covered BBY 32.67
Checking out SWKS (iPhone component play).
Solars making small relief rally on tiny volume…. as usual.
Sold NDN on the open.
Gio, I just put up a post on my blog about Hawaii hotel occupancy rates you might find interesting. I am seeing some early signs in the search volume that hotel occupancy might be picking up soon…
http://www.cavemanforecaster.com/2009/07/hawaii-hotel-occupancy-looking-up.html
Thanx for the research. I’m closely connected with hawaii’s hotel building industry. I also got some data from our local economist report. Ill c if I can share that with yah later. Great job bruddah
Sounds cool. I didn’t realize you had any direct connection to the hotel industry. And I certainly am always interested in any data I can get my hands on!