Let's Just Call Him, "Richard's Sporting Goods"

Come to think of it, maybe we should say, "Richer Sporting Goods."

With all of the pent-up demand from kids brimming with cabin fever across the country (not to mention the parents, too) after a year of pandemic-related cancellations of sporting events, among other things, I suspect DICK'S Sporting Goods, Inc. (DKS) is in prime position to benefit from a variety of factors. 

First and foremost, the incoming stimulus checks gives some extra cash to families especially to spend on sports gear for kids as they have physically outgrown their old gear over the past year, as well as athletic clothing in an increasingly causal-attire-only world. Beyond that, headed into spring and summer there should be a premium placed on outdoor activities more than anything else as the restrictions there will be the first to ease entirely, once again seeing DKS in the sweet spot to benefit. 

In addition, note that DKS is a short squeeze play with roughly 18% of the float held short, despite the chart looking strong on literally all timeframes right near all-time highs. 

On the DKS daily chart, updated below, we can see a multi-month sideways base threatening another leg higher into the first batch of "stimmy" checks likely arriving via direct deposit as soon as this weekend.

Shorts look to trapped themselves in DKS, needing a broad market slam or some shockingly bad news out of DKS itself to get bailed out here. But even today, with the Nasdaq getting hit on another spike on the 10-Year Note, we can see plenty of individual stocks and sectors shrug off the QQQ weakness catch rotation which, again, should instill some serious fear in DKS shorts the next few weeks.