Hurricane Harvey has dissipated, but one of the most popular hurricane stocks continued its bullish momentum on Tuesday.
With Hurricane Irma now a category 5 storm and Tropical Storm Jose right on its heels, traders are betting that there could be more demand for Generac Holdings Inc. GNRC 0.84% power generators in the weeks ahead.
Irma Isn’t expected to make landfall in the U.S. until possibly this weekend, leaving several more days for traders to gage the situation and potentially trade news of the storm. Generac shares were up another 3.4 percent on Tuesday and are now up more than 10 percent in the past five trading sessions.
Generac is one of the most weather-sensitive stocks in the market, and it’s not just hurricanes that impact the generator business. Generac hit its all-time high of $62.50 back in March of 2014 after one of the coldest winters in history provided a shot in the arm for the generator business.
If the stock follows the same pattern it did prior to Harvey’s landfall, the share price is only headed higher from here. Generac stock spiked 6.6 percent on August 24 and 25, the two days prior to landfall.
With maximum sustained winds of 180 mph, traders see the potential for widespread power outages from Irma as well.
From a technical standpoint, Generac is approaching…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
