01Jul11:10 amEST

Headed to the Boat This Summer

Following a spring of fear, uncertainty, and a string of events this nation has not seen in at least a few generations we are now headed into the heart of a summer of uncertainty. With this in mind, there is even more of a premium placed on ideas which seem to be a bit more certain and predictable. 

One thesis we are examining more closely for July is the notion that, amid continued virus cases, localized outbreaks and lingering quasi-lockdowns, Americans will be headed to the water for some outdoor recreation where social distancing is relatively easy. Mind you, I recognize that plenty of people are not exactly in a rush to open up their virtual wallets and drop a ton on recreational boating. 

But I still suspect that a firm like Brunswick Boating, which is the largest maker of pleasure boats in the world, stands to benefit from a summer where many people are inclined to go outdoors to the water even more than usual for their entertainment, especially with no sporting events for them to attend (even when the leagues re-open later this summer, if they actually do), in many cases no movie theaters to watch summer "blockbusters," and a likely aversion towards headed into major cities like New York for the foreseeable future amid social unrest and surging crime. 

Hence, heading to the lake, river, ocean, is bullish for BC, seen below on its zoomed-out daily chart threatening to clear the mid-$60s and confirm the deep cup and handle bullish setup. All-time highs are not far above from here. And as more Americans embrace summer activities like boating probably much more than usual for the above reasons, I am an interested long. 

As for the market at-large, it seems like plenty of traders have already taken off early for the long weekend. I cannot blame them, as the last few months have exceeded even 2008, at times, in terms of how fast-moving the major news flow and pre/post-market moves have been. BYND is squeezing on some China news, and the the PLUG TSLA duo is surging, forcing me to keep an eye on NKLA to see if it gets going later today. 

Blending In, Only to Resurfa... Smell Ya Later, TVIX


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