Pandemic Fears Could Sink Cruise Stocks –Again
From Ian Cooper, Author Trigger Point Trade Alerts
Markets are ugly again.
Early Monday, the Dow slipped 500 points, as the NASDAQ fell 133.
All thanks to rising CV-19 cases.
According to CNBC, “Cases have rebounded in the U.S. this month with the delta variant spreading among the unvaccinated. The U.S. is averaging nearly 30,000 new cases a day in the last 7-days ending Friday, up from a 7-day average of around 11,000 cases a day a month ago, according to CDC data.”
In addition, according to The Guardian, ”Hospitalizations and deaths are also seeing increases – about 36% and 26%, respectively,” said Rochelle Walensky, director of the Centers for Disease Control and Prevention (CDC), noting this was another “critical moment” in the outbreak.”
Should cases continue to increase, we could see another round of closures, industries shutting down, such as cruises, and fears of economic slowdown, worst case. At the moment, one of the best ways to trade the news is to trade the short side of a cruise stock, such as Royal Caribbean (RCL), which is plunging again.
The last time cruise lines were sunk on pandemic news, RCL fell to a low of $26.83 from about $130. Hopefully, things won’t get that bad again. But it all depends on what happens with new news of a pandemic outbreak.