Diners Delight:
Did investors react a little too jubilantly Monday to the PFE news? One could easily make that assertion, as things tend to overreact to both the up and downside regarding markets. One thing traders can look too are names outside the box that could have a tailwind to the economy “reopening”. The chart below of MIDD could be a good example, and the one thing that impressed me with this chart, albeit it has already made a banner like move, is that its breakout occurred before the major news event to start this week. It recorded a 19% combined move last Thursday-Friday in big volume, after an earnings inspired move. In fact the prior three all rose robustly by 16.3, 8 and 8% on 8/5, 5/7 and 2/26 as well. The company that supplies restaurants with equipment, should continue to thrive going forward as the economy gets back on track. If it was able to do so among certain “lockdown” measures throughout 2020 (FOUR straight positive earnings reactions), I believe it will be able to do so in a more improved environment going forward.