Is XRT Stock a Great Reopening Retail Trade?

After a year of wearing sweatpants on Zoom calls, folks are updating their wardrobes ahead of some long overdue summer fun.

If you've been following me here at Fast Profits, or at my own free newsletter Straight-Up Profits, you know I'm extremely bullish on retail right now. It's an industry that already sees some seasonal strength this time of year, but that's not the only thing driving this group of stocks higher.

Right now, the economic recovery from COVID-19 is adding some rocket fuel to the April rally, and the retail sector in particular is booming.

The SPDR S&P Retail ETF (NASDAQ: XRT) is already up over 45% year to date (more than 200% since this time last year). And as shoppers take to their favorite stores both in-person and online, I'm expecting older Gen Z consumers to be the biggest drivers of retail stocks.

College kids are about to get priority in the ongoing vaccine rollout, an attempt to bring higher education back to the classroom come September.

And today, I'm tapping into that perfect storm of catalysts with a trade on a retailer targeting the 18- to 28-year-old demographic.

This go-to brand for younger shoppers recently announced earnings, just beating Q4 2020 sales expectations, despite struggling under heavy restrictions for brick-and-mortar locations.

And their more modest forward-looking expectations are creating an ideal trade window right now.

Check out the full trade details in the video below...

Trade details...

Action to Take No. 1: Buy shares of Urban Outfitters Inc. (NYSE: URBN) using a limit order of $38.

Action to Take No. 2: Buy to open URBN Sept. 17, 2021 $38 calls (URBN210917C00038000) using a limit order of $5.30.

Milk the April Rally for All It's Worth with Tom's 100% Winning Streak

Over the last 12 months, Tom Gentile's been closing out one winning recommendation after another... In fact, not a single one of these picks hasn't seen profit. That's right - he's locked down a 100% win rate.

That means if you weren't part of this group, you missed out on 29 paydays... and 0 losses.

But the profit potential won't end with the pandemic...

If there's one thing we can take away from today's edition of "Fast Profits with Money Morning," it's that we're on the cusp of a seasonal trading gold mine. And Tom's Rocket Wealth Initiative could help you turn the April rally into even bigger gains.

Just click here to see how...

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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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