CHART OF THE WEEK: THE TREND IN POOLS IS UP
With this week’s chart, we note how another “armchair economist” indicator is saying “things can’t be all that bad.”
We note the bullish price action in Pool Corp. (POOL).
These days, one of the great financial debates centers on the U.S. economy.
On the other side, you have the “glass half-full” crowd, who say the economy is gradually getting “less bad.”
As usual, we encourage folks to form their own opinion… but always “mind the market” for clues on which side is right. The market is the judge, jury, and executioner of any idea.
Pool Corp. is the country’s largest distributor of pool supplies and equipment. Since a pool is an “I want this,” rather than an “I need this” purchase, the pool industry rises and falls with how “flush” Americans feel at any given time.
As you can see from this week’s chart, folks are feeling flush right now. Pool Corp.’s profits are rising… and its stock price just struck a new 52-week high.
Keep in mind, in today’s world of dangerous government debt levels and market manipulation, any trend can reverse quickly. But for now, the trend in economically sensitive assets like Pool Corp. is heading higher.
– Brian Hunt
Source: Brian Hunt’s Market Notes
