Every single person on the planet is impatiently waiting for the world to open back up.
There has never been another moment in time where we were all put under “house arrest,” and once we’re all set free… the profits we stand to gain will be historic.
The economic reopening is a once-in-a-lifetime opportunity for us to position ourselves for guaranteed explosive gains.
When companies worldwide are once again able to operate on 100%, they will quickly bounce back to their pre-pandemic prosperity.
My charts show me that five sectors will enjoy the bulk of the reopening profits.
Grabbing your fair share of the reopening profits is as simple as investing in these sectors.
My data identified a handful of stocks that you’ll want to look at right away.
Not to mention, two specific stocks stand out above the rest.
And these two stocks could be the big winners of the 2021 economic reopening…
Without further ado, here are my five “absolutely must own” reopening sectors of 2021:
- Retail: retail sector is the early performer in the “reopening trade,” and I’m sure it’s obvious to everybody why. Once stores and malls are back to 100% capacity, retail companies will naturally rise back to their pre-lockdown days. In fact, a new generation of retail companies are currently outperforming Amazon.
- Materials: the materials sector is going to continue to rally higher on the “restructure” trade and inflationary pressure pushing prices higher. I’ve got my eyes glued to this industry and am on the lookout for any major catalysts. Stay on the alert for my next Straight-Up Profits article so you immediately know when it’s time for us to make our move.
- Commodities: I just mentioned inflationary pressure, and this is the hedge performer as we see commodity prices that are disconnected from stocks and any expansion in the global economy is only going to turn up the heat here. The Invesco DB Agriculture Fund (NYSE:DBA) and Invesco DB Commodity Index Tracking Fund (NYSE:DBC) are your long-term trades here.
- Travel: They’re getting knocked down right now due to the increase in pandemic headlines, but any sign that we’re in the later stages of this cycle will turn these stocks back on, quickly. The travel technology exchange-traded fund, ETFMG Travel Tech ETF (NYSE:AWAY), is my sleeper pick here – along with companies like Uber Technologies, Inc. (NYSE:UBER), TripAdvisor, Inc. (NASDAQ:TRIP), Travelzoo (NASDAQ:TZOO) and trivago N.V. (NASDAQ:TRVG). I expect all these companies to jump higher as soon as travel restrictions are finally lifted.
- Clean energy: The iShares Global Clean Energy ETF (NASDAQ:ICLN) and Invesco Solar ETF (NYSE:TAN) have been clobbered over the last two months as they became crowded trades and the mention of “clean energy” has dropped from the headlines as the bobs bill slowed progress. But the second 100 days are now here, and we just heard Biden mention that he wants to get bipartisan support for the bill, even if it’s smaller. This is why we’re seeing the upgrades and it’s why these names should be hitting some long-term buys here.
Now I know that’s a lot of stocks I just showed you.
But if you can only focus on two stocks this year, then all my technical data is indicating that these two stocks below stand to reap the biggest profits this year.
My first top trade is in Netflix, Inc. (NASDAQ:NFLX).
NFLX dropped from the $550 to the $500 level as the company reported a dramatic slowdown in subscribers. But keep in mind that investors were “buying the rumor” into earnings, and this recent drop can be attributed to a “sell the news” selloff that always follows.
NFLX is a widely held stock that will no doubt regain momentum, and the company will announce major upgrades that will provide a catalyst for a bull rally. Watch for the volume to rocket higher in NFLX before you try to grab a bargain bin deal.
My second top trade is in U.S. Concrete, Inc. (NASDAQ:USCR).
The “buy-the-rumor” rally is coming to this stock.
It just hit a strong support at the 50-day moving average, and it’s a key company in the “rebuilding” trade. You could buy this stock up to $75, but no greater than that.
It’s such an exciting time for the market, and so many bullish catalysts are happening at the same time that it’s hard to keep up.
Timing is everything, and I will notify you right away of any major profit opportunities.
So, stay tuned for the next edition of Straight-Up Profits.
Until next time,
Chris Johnson
Source: Straight Up Profits