21Jul11:12 amEST

Here's Why You Actually Should Get High on Your Own Supply

United Natural Foods, Inc. (UNFI), below on its updated daily chart, is another one of several virus-related names which do not seem to be going away. 

Typically, with such an obvious, headline-driven event or cycle, as we are in, the related stocks on a direct and indirect level will sprint early on in the cycle and then essentially peter out over time. The trade is over just as soon as it starts, thinking about to Ebola plays in 2014, for example.

In this cycle, however, given how sticky the virus seems to be and, moreover, the various restrictions around the country, a food supply chain play like UNFI seems ripe to squeeze the many shorts in its float higher yet again. As consumers re-stock their pantries much more often than usual in light of summer vacations, concerts, sporting events, and plenty of indoor dining/bars being ruled out of bounds, kids still at home possibly through autumn, and the general uncertainty likely pushing most folks to simply eat at home in lieu of takeover or delivery quite as often, UNFI's angle on this pandemic seems to be as enticing as ever. 

Individual names like the XLP ETF for snack foods, like CAG or BGS, make sense, too. But UNFI is a major player in the supply chain which, despite some of the things we have seen since June, is still the gatekeeper in many aspects between us living in a civilized society. 

As you can see, UNFI's pattern is threatening a multi-month base breakout higher as various grocery store names like KR and SFM exude excellent strength today, too, which jives with the notion that Americans are shifting their purchasing habits beyond a near-term blip. 

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