Cruise Ships Are Leaving Port. Here’s my take on $CCL $RCL and $NCLH (June 01, 2020)
RCL DKNG RCL CCL NCLH
I am switching gears here a little bit with respect to DraftKings ( NASDAQ: DKNG ), which everybody seems to be asking about all of the time, which is a fine thing, just stay long as long as it is walking along the upper band.
Know that you are not going to get out right at the top. You may get out right when YOU think the top is but the stock kind of thinks differently. Just know that at any given time if the stock reverses you are going to wish that you had sold higher but there is a pretty good chance that if you sell right now you are probably going to wish you had held out for higher prices. So just manage your risk with stops.
We are looking at a different kind of trade now; I am not going to give you the entries and this and that and the other thing but I am just going to give you the analysis here. The cruise lines, look, nobody is going to loot a cruise ship so there is not this kind of danger there.
I look at these as kind of like COVID stocks. As the economy starts to reopen, if these cruise companies are kind of still in severe financial crisis. But if they weren’t able to get their ship in order, pardon the pun, or get their ship together I guess we could say, then the stocks would reflect that. But as they’re trading now they are actually looking for, I’ll say it, sorry, smooth sailing, calm waters ahead, that kind of thing.
I want to look at these stocks. Now, this is a breakout here on Royal Caribbean ( NYSE: RCL ), about average volume. I think if you are buying this stock, give it about 10 percent room to the upside.
Carnival Cruise ( NYSE: CCL ) is still in kind of a little bit of consolidation; it got ahead of itself last week with this kind of gap and crap. These stocks are so low-dollar that they make these little tiny moves but they are actually a pretty big percentage move, this one is over 15 percent from top to bottom so this is consolidating, it is kind of gathering itself and you have got to give this room to below $15.00; sorry, that’s just the way it is.
Finally, Norwegian ( NYSE: NCLH ) is kind of halfway between Carnival ( NYSE: CCL ) and Royal Caribbean ( NYSE: RCL ), where it is up a little bit farther in the pattern than Carnival ( NYSE: CCL ). Whereas, Royal Caribbean ( NYSE: RCL ) is actually kind of up at a new high.
So any of these stocks, if you buy all of them you are not being diversified. Pick one, I am not going to tell you which one, but any of these stocks are really going to work. Look at all of them but have one stock that you are following, no issue with earnings because I think money is going to continue to come into these stocks. If this thing ( NYSE: NCLH ), for example, breaks out above 18.00 it’s probably a pretty good chance that it’s going to at least 20.00 and that is over 10 percent.
So you are going to get some big percentage swings in these stocks and I think money is coming into them, which means maybe you want to get in there before all of the money has come into them. Get in there a little bit early and then you can afford to get out late.
Free Chart