Sell MSG for a 47 percent win on Monday, August 6, 2018. The CMF has gone negative as the stock takes a rest and consolidates some of its massive run up. What a lucky trade to get in months before the big run up in 2018!
The idea behind this trade was that as the economy improved during a Trump administration, more money would be spent on consumer discretionary products and services like sporting events but now that we are in a late cycle expansion with the Fed raising interest rates, consumer cyclicals are likely to lose leadership soon IMO. We don’t know when consumer discretionary spending will drop but we do know that in a rising rates environment, it’s coming. Momentum in MSG has slowed so it’s a good time to sell into strength and book that 47 percent win in MSG IMO.
Here is a good video from Keith McCullough on consumer cyclicals and market cycles: