When the Hustle is Over, You Leave Town

Now is not likely the correct time to begin trading the firearms plays, RGR SWHC, on the long side due to rising gun sales. In fact, on the SWHC weekly chart, below, that trade looks to have run its course, with the ubiquity of the bull thesis likely priced in already.

In fact, a slowdown is the buzz of the tape this morning, with political factors becoming more of a headwind than a tailwind in terms of pulling forth further growth of sales. The weekly SWHC shows the prior uptrend unwinding now, with the threat of a new leg down from the highlighted base. Long-term longs should likely be locking in at least partial profits. 

Either way, there sure are better spots for bulls in this morning, as the upside momentum dating back the last few weeks is still in play. We are updating our Watchlist of longs for Members into this strength, including trimming some profits for discipline with Chair Yellen speaking later in the day. 

But when it comes to trading politics and macro, such as what we saw with the RGR SWHC run-up over the last few quarters, it is not worth overstaying your welcome--When the gig is up you leave town.