Dollar General: The Solution to Brexit Damage to Your Portfolio

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What do you do when Brexit takes a hatchet to your portfolio? Well you adjust your habits of course. With less disposable cash you start to cut back. Budweiser instead of Craft beer. Cracker Barrel instead of Ruths’ Chris. Take that to other discretionary shopping and you can easily see why the dollar stores space is bucking the market trend.

One Stock, Dollar General, $DG, does not care one iota that the UK is gonna leave the European Union. As the S&P 500 is down over 5% from last Thursday, Dollar General is at all-time highs. And the chart looks great for more upside.

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There are 4 things to note in the chart above. First is the break out of the range that price was in for almost 1 month. Second is the squeeze in the Bollinger Bands®. This suggests a move to come. The RSI is bullish and rising and the MACD about to cross up. Finally, the chart shows a bull flag pattern triggered. The target out of the flag is a move to about 100.

Fitting isn’t it. Brexit makes you feel like your portfolio is worth a dollar so go buy Dollar Tree and take it to $100.

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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.

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