A few opportunities are emerging for long-side traders
Consumer staples have sold off along with the rest of the market, but if grocery store shelves are any indication, this sector should have a pretty good quarter. With people eating out less and eating at home more, expect several months of strong demand and good free cash flow in this sector. RHS looks to me to be finding support, and the big volume spike today implies that we've possibly reached a reversal level.
Now that the news environment around travel bans and quarantines has settled somewhat and we know what the next month or so will look like, I'm starting to see signs of divergence between the winners and the losers. There's going to be a lot of stock picking and a lot of attention to sector-specific economic data and company-specific guidance and financials. There are starting to be a few reasonable long plays, including consumer staples (RHS), video games (ATVI), streaming services (NFLX), direct-to-consumer shippers (FDX, UPS), and remote working software (CSCO).
Now that the news environment around travel bans and quarantines has settled somewhat and we know what the next month or so will look like, I'm starting to see signs of divergence between the winners and the losers. There's going to be a lot of stock picking and a lot of attention to sector-specific economic data and company-specific guidance and financials. There are starting to be a few reasonable long plays, including consumer staples (RHS), video games (ATVI), streaming services (NFLX), direct-to-consumer shippers (FDX, UPS), and remote working software (CSCO).