Hurricane Sandy anomolies?

Discussion in 'Trading' started by Mirzy, Oct 31, 2012.

  1. Mirzy


    I read a lot of literature/news on how stocks perform after a hurricane. I also saw from first hand experience that Home Depot was sold out of generators, pumps, flash lights, light bulbs and other things one may need after a hurricane as I'm sure Lowe's is also as well as Walmart. Why then is Walmart basically flat, HD is nearly at the 50% retracement from it's gap up point, Lowes has retraced even further than 50% from it's gap up high. What gives?

    My theory is this, common knowledge says that LOW,HD,WMT will go up, so instead it goes down. Maybe the big boys are just playing the market the opposite way the public plans to, sort of like squeezing the shorts, but squeezing the longs in this case? Is that even done, I've never heard that term. Maybe I've been reading too much reminisces of a stock operator... what are your thoughts on this?
  2. Mirzy


    On another note. Some stocks I see behaving as expected are Ford, and GM. They are up as many cars are destroyed by the salt water and will need to be rebuilt. Toyota is staying put however for the time being.

    Other hurricane stocks performing as expected are:

    NUE - need steel for rebuilding
    CPB - people stock up on soup
    TTC - gonna need some landscaping after storm
    CLH - waste management doing great today
    WM - waste management, not as good as CLH though

    What gives with Lowe's, Home Depot and Walmart though?
  3. 1) People will return what they bought and haven't used from those "tickers". Close-out sales on lawn mowers can be depressing them too. :eek: :(
    2) Jesse Livermore was a dork. :cool: