Stocking Up for Winter

The news flow clearly points towards the potential--or at least the perceived potential--for tighter nationwide firearms regulation in the coming months. 

While the debate rages on, firearms makers SWHC and RGR both surge higher today. SWHC had been a quality long setup last week, positively diverging from the market on Thursday. However, we took a pass on playing the long side due to the imminent earnings announcement coming up tomorrow after the bell.

Nonetheless, if SWHC can hold over $19 after the earnings reaction, it may very well set up another, lower risk entry point on the long side. The daily chart, below, shows a triangle upside breakout,  coming to fruition today. 

As for RGR, the chart setup is far less desirable than SWHC, with today's rally rendering the stock overbought up against likely initial resistance--RGR has much more work to do. 

Either way, firearms makers are acting like buyers are stocking up for winter, and then some.

Regarding the market at-large, I will make sense of it, along with plenty of updated ideas, for Members in my usual Midday Video.