Three Stocks to Watch: Toy Stories, Slippery Slopes, and Buying Dreams

Toy Stories:

Hasbro (HAS) made the Grinch smile on Monday when they announced the company was cutting 20% of their workforce. Let’s face it, kids don’t get “toys” for the holidays anymore.

I won’t go into details here on what I found when I Googled “Top Christmas Toys for 2023”… I’m nauseated.

Just planting this seed, Mattel (MAT) hasn’t made a peep of late, and the Barbie trend has long been forgotten. A break below $18 on Mattel begins its trend to $10 in 2024. 

Oil’s Slippery Slope:

Following up on my comments last week, the U.S. Oil Fund (USO) broke below critical support of $65 on Tuesday and is now targeting its next short-term move to $57.50. 

That’s a 10% plus drop in oil and is easily traded with the ProShares UltraShort Bloomberg Crude Oil ETF (SCO). 

One way I’m trading the breakdown in oil is by buying the inverse ETF trades at roughly -2:1 with oil. SCO shares are making a bullish break above their 200-day moving average. 

Bullish on the American Dream:

The housing market is getting a resurgence as interest rates continue to drop.

According to Similarweb.com, Zillow is the number one ranked website for traffic in the Real Estate space. Admit it, you’ve spent time over the last week looking for your next dream hole... I know I have.

Here’s the thing: Zillow (Z) shares are breaking above their 200-day moving average for the first time since January. The stock ran 32% higher after that bullish breakout. I’ll have more on Friday on this stock with an in-depth look at the Zillow chart.