The current reality on Wall Street is we’re on the crux of the reopening trade running the markets…
Day by day, travel restrictions are less rigid and people are actively traveling again — after almost two years of staying home and canceling plans. So it’s given me an idea on a few reopening trades to watch…
Companies are doing so well right now that traders can’t be outright bearish anymore — earnings reports are beating expectations.
For instance, Simon Property — one of my Money Flow Elite picks for the month of November — is one of them.
Reopening Trades to Watch as November Begins
During the early stages of the COVID-19 era, I was as bearish as an investor could get on this stock. But now? Not so much…
Simon Property Group Inc. (NYSE: SPG), a national shopping complex owner, annihilated earnings — almost doubling earnings per share expectations. The stock has been a lightning rod for the reopening trade, and it appears reality is better than even the ever-optimistic Wall Street view.
People are living life with less fear for the first time since the beginning of the pandemic, and owning this stock into the holiday season seems like a perfect storm… And it’s also the reason I’m going long on it.
When COVID-19 first started running amuck, we had a huge rise in companies that started doing indirect sales, formed subscription models, designed new ways of zero-contact shipping and delivery, and went online.
But now we could be at a turning point…
However, it’s still important to point out that COVID-19 is a virus and cannot be completely eradicated. Having a zero-COVID-19 world is not a realistic goal. That’s like saying there’s going to be no more flu — it’s just not going to happen.
But with that said, I’m getting a bit more bullish on things like cruise lines and airlines — anything that deals with normal life again.
And that reminds me of another reopening trade to watch…
I read a report the other day by Norwegian Cruise Line Holdings Ltd (NYSE: NCLH), and it said the company had reached 85% of its 2019 occupancy.
And in October, Caribbean Cruises Ltd (NYSE: RCL) sailed to Miami with 85% occupancy — the world is ready to get back to normal life.
While it might sound crazy to some investors to feel bullish on the travel sector, I’m a trader. I have to be quick and move when the market is moving — I can’t just sit and watch profit opportunities fly past me.
And the most dangerous place to be in the market right now isn’t travel, it’s actually technology…
Especially as interest rates are about to skyrocket.
Luckily, Wealthpress Senior Strategist Roger Scott tells me he’s found massive gain potential in the robotics sectors that he can’t wait to share with our readers.
Check out the video below to learn more about which reopening trades to watch, and Roger’s robotics picks.
Send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
