Prognosis Through Osmosis

Extreme opening weakness for the problem spots in this market of late, namely BA, cruise lines like CCL NCLH RCL, airlines, and casino stocks, did not deter buyers from defending against an outright rollover. As a result, another squeeze is back on with bears left scratching their heads as to how the greatest economic superpower the modern world has seen can remain nearly shutdown for the next month while stocks are attempting to stabilize. 

In reality, the function of The Fed taking abrupt and significant measures with the federal government's stimulus Bill, however flawed it may be, combined with skeptical sentiment may be enough to bounce us a bit more for now. And the natural cross-currents with end of month/end of quarter gamesmanship among funds may also be in play, too. 

However, when the dust settles as we turn the calendar to April later this week it will be interesting to see just how much staying power longs have should we continue to see exponential growth in virus cases across the country and how that relates to a realistic timeline to re-open the economy. 

In the meantime, I have my eye on stocks which most likely benefit from the prolonged quarantine. By now, we all know about the likes of COST or KR, even CLX. 

But regional or smaller grocery store chains like SFM, below on its daily chart, may have been overlooked a bit by the market during this mess. As people across the country will shop at whichever store is closest to them out of convenience, as long as the supply chain can re-stock for the next wave of quarantine shoppers I expect the discretionary money no longer flowing in the economy to keep re-routing to the grocery stores.