These are happy times for bulls. Nothing seems to stop the march higher, not war, egregious bank losses or unchecked gains. Naturally, when bad news is ignored the markets are in good shape. For the time being, I will accentuate my bullish picks, as my shorts get juggled around by drunken clowns. However, keep in mind, I still loathe the market and wish it lower, on a second by second basis.
Okay, putting on my bull hat (it has two knives and a gun on it), I can tell you retail will benefit from the bullish sentiment. And, any company that has been hurt by higher oil should go higher too, now that commodities are “old hat.”
One obvious beneficiary is FedEx Corporation [[FDX]] . Coupled with that is Amazon.com, Inc. [[AMZN]] .
The thought process is to be long “early cycle recovery names.” If the U.S. picks up growth, both of the above names will benefit, almost immediately. Plus, I believe AMZN offers free shipping to its customers. So, any reduction in crude will definitely help their margins. Needless to say, it’s an erroneous argument, specious at best; but it is working.
On the retail end, stocks like Coach, Inc. [[COH]] , [[M]] and J. Crew Group, Inc. [[JCG]] have been blown up. They can run. And, for a dice roll, take a look at Zumiez Inc. [[ZUMZ]] .
In the food and beverage space, I like Hansen Natural Corporation [[HANS]] , under $25. I am somewhat gravitated to the name; don’t ask me why. This morning I bought a small piece. Basically, the stock is trading at a ridiculously low valuation. Plus, they’ve been hampered by raw material/transport costs too. With the recent commodity swoon, perhaps some of their input pressures will abate.
Once again, the banks are running higher. I cannot and will not buy them up here. No fargin way.
Buying the banks here is just asking for a beat down. No thank you, Mother Market, I’ve had enough.
Speaking of lunacy, take a look at the casinos: Wynn Resorts, Limited [[WYNN]] , MGM MIRAGE [[MGM]] and Las Vegas Sands Corp. [[LVS]] .
That’s another sector way ahead of itself.
Let me guess the rational: jet fuel costs will lead to cheaper airline tickets. As a result, degenerates will flock to Vegas like bad clothes to old dudes.
I don’t think so. It’s just a short squeeze.
Speaking of short squeezes, fat folks are bidding up NutriSystem Inc. [[NTRI]] . There is such a large short position there. I am sure the breakdown of commodities helps them too.
Finally, it’s worth noting, gold and oil are at critical junctures right here. If the uptrend is really to be broken, it will happen soon—especially in gold. If not, well then, stocks like Yamana Gold Inc. (USA) [[AUY]] , Goldcorp Inc. (USA) [[GG]] and FCX are incredible buys. With my money, I rather wait for confirmation, prior to taking that bet.
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