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…
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.
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.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Straight-Up Profits. He also contributes to Money Morning as the Quant Analysis Specialist.