It was a big news week for Covid-19. The economic recovery stocks bounced on Monday’s news from Pfizer, but the market has generally chopped back and forth since. There is a real struggle going on between the recovery stocks and the stay at home stocks. Do we focus on positive vaccine news or do we look at the insane Covid data? There’s no doubt we’ll see more shutdowns before consumers are truly comfortable spending money and leaving their homes, but will the market care? Will the market just look past the dark winter and focus on the post Covid world?
I’m currently in both recovery and stay at home stocks, but the weight of each is actively shifting. My next big move will likely be after Thanksgiving. We really need to see how big of a super-spreader event Thanksgiving is here in the states. The ideal play is for the stay at home stocks to rocket up, at which point I’ll thin my positions in stocks like DOCU and CHWY. At the same time, I’ll move more heavily into recover stocks with the understanding that I’ll have to remain patient. It may takes many months to realize those gains.
My favorite recovery stocks (likely to change over time):
BA – Airlines (I’m long)
NCLH and CCL – Cruise lines
SAVE and DAL – Airlines
WYNN – Casinos (I’m long)
BKNG – Travel booking
FANG – Energy (I’m long)
DIS – Theme parks
[highlight_sc bg_color=#21c2f8 text_color=#ffffff border_color=]SABR – added to list on 11/22[/highlight_sc][/iconbox][iconbox icon=”imf-movie” title=”Entertainment Stocks” t_color=”#dd9933″]LYV – Concert ticketsDKNG, GAN and PENN- Sports betting
DEO – Alcohol
AMC – Movie theater[/iconbox][iconbox icon=”fa-group” title=”Leave the House” t_color=”#dd9933″]PLNT – Gyms
SPG – Malls[/iconbox]
