October 1, 2021, 4:34 pm EDT
Desires for Entertainment and Travel
It is probably the first time in human history that the whole world population is constrained to travel, entertainment, and all public activities for the second year. The limitation is not over yet. In addition, no one knows when we will get back to the normal mode. Normal means to take airline travel, attend concerts, or go to casinos, etc.
Today, Merck (MRK) +8% announced its Covid pill will help to combat the disease with a certain percentage. Perhaps, it gave people another hope that the desires for entertainment and travel may be fulfilled. Thus, airliners, recreation, and gambling / hotel stocks stood up brightly.
- Airliners: UAL +8%, DAL +7%, LUV +6%, JBUL +7%, AAL +5%
- Recreation: TRIP +9%, WGO +7%, LYV +6%, SEAS +6%, NCLH +5%, CWH +3%, THO +3%, RCL +4%, CCL +4%, WMG +5%
- Gambling / Hotel: PENN +8%, CZR +6%, MAR +5%
Many of the above stocks have a great setup for potential breakout or uptrend. Thus, they can provide a list for a weekend study on watchlist or portfolio candidates.
However, all charts of major indexes are damaged by the sharp selling activities in the past three weeks. Today’s rebound is not powerful enough to change the medium downtrend under 50 day-moving-average lines. Therefore, buying stocks require extra caution if another selling waves come back again.