Watching ‘Getaway’ Stocks, Sectors

2020-09-15

When looking for possible setups in a constantly twisting market, consider thinking outside the headlines.

Or, even more specifically, consider the companies that the headlines are driving toward profitability. These are companies that “fly under the radar” and bigger investor funds might overlook.

Political and social events are pushing up profits for these companies.

Consider companies in sectors like camping, outdoor supplies, recreational vehicles, firearms, and any manufacturer with products where people can “get away” from it all.

These companies took a hit after the March crash like the rest of the market, but certain ones had been doing well prior to the crash and have recovered at a stellar rate.

No matter the market conditions, political and social unrest can be expected for months ahead, even after the presidential election. The hope is things will calm down, but indicators show otherwise.

These “getaway” companies will still be under the radar with little expectation that they will suddenly head into a downtrend.

This is an area where retail traders can take advantage of these stocks that are presenting more “normal” chart patterns and avoiding the ongoing market turmoil. These tickers likely won’t start the day flying high and then falter before going flat into the close like the indexes did today.

Other stocks to watch include companies supporting do-it-yourself projects and consumer staples.

No matter the sector traders are pursuing, Simpler’s team maintains a cautious eye on a possible overall market flush.

Watching lower time frame charts, i.e. day, 195 minutes, 78 minutes, and 30 minutes seems prudent with how quickly the market momentum can shift. We’re keen on any tickers showing high volume moves that might lead to short interest squeeze setups.

We Saw: a surging market quickly fizzle — 

  • International trade fight heating up
  • Big tech flexing muscle in politics
  • Big tech gains affected by big personalities

We’re Watching: for ‘getaway’ stock opportunities —

  • Volume with a momentum squeeze signal
  • Where markets will be into fourth quarter
  • Setups in: QQQ, NKE, LMT, NET, FIZZ

Want big gains from all-time highs? — check out the “High Short Interest” HERE.