Hurricane Dorian Plays

Potential natural disasters, such as Hurricane Dorian currently barreling towards Florida, remind us of just how helpless we can be at times when it comes to Mother Nature.

As traders, no one is rooting for death and destruction. Instead, we are simply aligning our views with reality--If Dorian strikes Florida hard then we want to be armed with solid trade ideas to play any potential pops.

Generac is an old favorite which one of our Members flagged yesterday, a backup generator play. Naturally, this one should flourish even if Dorian does not wreak havoc. On the GNRC daily chart, updated below, you can see just how smooth the name has been this summer. Maybe, just maybe, the market is forecasting a rough go of it with Dorian for Florida with that buy volume which came in over the last week or so. But let's hope not. 

Other ideas to note: ENR for batteries; PWR for post-storm cleanup; BECN for roofing. That said, ENR PWR BECN are not nearly the charts that GNRC is right now. 

Playing a major news event like a Hurricane can be a tricky trade. Oftentimes, the market is not too amenable to rewarding the types of plays so easily unless something well outside the realm of expectations happens (e.g. Hurricane Katrina). So, being quick with all of these Dorian trades makes sense if you play.