I hope you had a wonderful Memorial Day weekend full of outdoor activities, hotdogs and hamburgers—and, of course, honoring those who have made the ultimate sacrifice for our freedom.
I know we all needed the long weekend to decompress, and the markets were no exception. While the markets entered the holiday weekend in a grumpy mood, they seem to have come out feeling a bit better about the economy and what is to come. The latest consumer confidence numbers that came out today showed that confidence is at its highest level in the last eight months. This is a good sign for spending and the pending recovery.
But, as you know, there are still challenges ahead in this market, and we’ll need to continue to be vigilant in our buying and selling.
That’s why we took a long look at all of our Quick-Hit trades on Thursday and decided which positions we should add to and which ones were better to hold. All of those instructions still hold true today. Therefore, I do not have any new buy and sell instructions for you today. After all, with Panera (PNRA), Dolby (DLB), Buckle (BKE), Graham (GHM) and AutoZone (AZO) all up 4.5% or more today, the best strategy is to ride the wave of market optimism that we’re seeing this week and wait for our exit prices.
Now, because I don’t want you to make any major moves today it doesn’t mean that you can take the rest of the week off.
Our next Quick-Hit Earnings Trade issue is a very important one. Our final three companies will report earnings this week: AutoZone and Dollar Tree (DLTR) are scheduled to report on Wednesday. We also have the much-anticipated earnings release from Graham on Friday. These earnings results matched with an upward moving market should spell quick and explosive profits.
I’ll be in touch on Thursday with full details on our earnings reports and will tell you if the time to sell has come.
Click here to view last week's quick-hit trade.
Click here to view the full quick-hit archive.