A Sector in the News Could Deliver a Significant Gain ...READ MORE
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A Sector in the News Could Deliver a Significant Gain
Retailers are in focus this time of the year. They are filled with consumers, or the shoppers have stayed away from the store. There seems to be winners and losers at the mall, on Main Street, and on Wall Street in this sector during the holiday season.
One sign of potential winners and losers in the pre-internet days was the amount of parking available in a store's parking lot. Too few cars often foreshadowed problems for the retailer since that was an indication the store just didn't have what shoppers were looking for.
As traders, we are looking for updated versions of that indicator and one of the simplest ones is to simply look for "out of stock" notices at online retailers or excessive shipping times that indicate potential inventory problems.
We apply that idea in our latest article and identify a retailer that is faring well online. In fact, its sales numbers indicate that if it were in a nearby strip mall, shoppers would most likely be fighting for the few available parking spots.
But all stocks carry higher than average risk in this market environment and that is true for this stock, so we define a risk reduction strategy for trading the company.
You can find the details of a specific trade that uses real market data in our latest free educational article that is available right here.
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Not sure the best way to get started? Follow these simple steps to hit the ground running.
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