Hey 5-Star Trader,
Every savvy trader wants to buy a contract at a discount whenever possible. While the pandemic certainly forced many tickers to be on clearance, I don’t think all these opportunities were made equal.
The travel sector came to a complete halt at the peak of Covid-19, which included the cruise liner industry. Some traders might look at this as a buying opportunity, but I say not so fast. I like to trade and buy and hold relative strength stocks, and cruise stocks have shown relative weakness. Of course these tickers experienced a severe downtrend in the pandemic, but they were already trending lower before Covid-19. I suppose if retail traders are looking for a beat down stock to buy, that is still 50% below where it was prior to the pandemic, and targeting a retracement, I don’t see a huge problem with it but I just think your money could probably be better used elsewhere.
Instead of investing in the travel industry, I have my eye on Disney (DIS), Paypal (PYPL), and John Deere (DE). These names have been sleeping as of late, but this consolidation on the weekly charts has me interested.