Throughout the week I’ve seen a number of bullish stocks in a variety of sectors showing up on my scans, and I’m starting to see an unlikely theme building, during one of the worst economic recessions most generations have seen in a long time. It’s almost laughable to think that these stocks and sectors are doing so well given that the majority of consumers don’t exactly have a surplus of discretionary funds to spend on a vacation…but the charts are what they are.
Isn’t it always like that in trading?
Rare earth metals, Crocs (CROX) and Lululemon (LULU), Dry Ships (DRYS)….it’s always the most unlikeliest of stocks that go on massive runs and who are we to argue with momentum when it’s staring us in the face.
For some reason rental cars companies such as Avis (CAR) and Dollar Thrifty (DTG), travel stocks such as Travelzoo (TZOO) and MakeMyTrip (MMYT), and one certain credit card company are very bullish… and yes they are overbought and will pull back at some point, but they will likely form bases and be much higher many months from now. Click on charts to enlarge:
You can charge your vacation with Discover (DFS) when booking your destination online at Priceline (PCLN), perhaps one of the strongest stocks in the entire market over the last year, clearing $500 Friday.
Disclosure: Long CAR, DTG