The Hurricane Isaac Trade – Beer
- Posted by Greg Harmon
- on August 28th, 2012
Hurricane Isaac is about to make landfall in New Orleans and there are many pundits and prognosticators speaking of the impact on Oil and Gasoline prices. Some even discussing how the rainfall moving up through the plains will help corn prices. They may all be right, then again they may all be wrong. Who knows what impact the weather will eventually have. One thing I do know is that it will be used as an excuse to stock up on beer. The beauty of that observation is that it would have happened anyway going into the Labor Day Holiday and football season. So my Hurricane Isaac trade is to buy Anheuser-Busch InBev, $BUD.
The daily chart above shows a new high in the making with a Relative Strength Index (RSI) that is bullish and rising and a Moving Average Convergence Divergence indicator (MACD) that is about to cross to positive. The Bollinger bands are expanding as well. As it breaks out of the current box and is moving higher it carries a target of 88 and a timeframe of roughly the end of September. But it does not end there. The weekly chart shows the long trend higher once over the double top and consolidation zone in green. Applying the Andrew’s Pitchfork shows that price is riding the Median Line higher, supported by a bullish RSI and a MACD that is positive on this timeframe. All positive on this timeframe as well. In fact the 3-box reversal Point and Figure chart carries a price objective of 123. That is hefty for a stock in the 80′s. At the current pace of rise that would take until October 2013. Any way you look at it this stock looks higher in the future.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Testing the Waters With Celgene
- A Long Term View On…. The Redux of 2013
- Premium Earnings 12-5-13
- 4 Lessons From A Glance Back at 2013
- The PC is Dead, Long Live PC Stocks
- Premium Earnings 12-4-13
- With The US Market in the Dumps Turn To China (Part II)
- With The US Market in the Dumps Turn To China (Part I)
- Premium Earnings 12-3-13