Americans Will Never Give Up Their Guns

But they appear to have stopped buying news ones, for the time being. 

You may or may not recall the early-pandemic phenomenon where many took their "stimmy checks" to the gun shop, gun store, or sporting goods store (or your vendor of choice) to purchase the hot weapon(s) they have always desired. 

Of course, what this was doing, in effect, was reaching out into the future and discounting many years of profits for said gun stores, monetizing it all in one fell swoop due to the pandemic and all its accompanying events. 

Thus, despite the current news flow of plenty of looting around America, big cities becoming increasingly violent and chaotic, the two main gun stocks, RGR SWBI, respectively below on their weekly timeframes, are both notably weak, as one of our Members astutely noted earlier. 

Again, this is consistent with a tapped out consumer who is finally succumbing to sticky inflation, higher rates, a slowing jobs market, and the general liquidity tsunami from the pandemic abating. 

If anything, Ruger and Smith & Wesson both look like shorts, with downside momentum and not much evidence of buyers stepping back in to support them. 

Speaking of a lack of support, thus far today buyers on the S&P 500 Index have yet to show up at the 50-day moving average, despite how many assumed they would. I am still looking for a much larger pullback and that should probably start with the 50-day failing miserably this month as support.