Hurricane Harvey made its unwelcomed entry on Texan soil Friday night around 9:45 pm. The Category 4 storm wreaked havoc over the great state of Texas beating its shores with record rainfalls. The good people of Texas are weathering the storm and have begun their work to recover. We send our deepest regards to those in the path of the storm.
While this has dealt a terrible blow for those effected there will be tremendous efforts to clean up the destruction and rebuild all that was lost.
Preparation efforts for the storm and the aftermath of Harvey’s unprecedented flooding and damage caused consumers to purchase generators, plywood, batteries, bottle water and emergency food in droves.
Oil & Gas refineries are heavily concentrated on the Texas Gulf Coast. Inevitably there will be temporary shutdown of oil production. You can expect to see an increase in oil stocks and prices of gas skyrocket across the nation.
Insurance companies will absorb huge amounts of loss as they prepare to pay out on claims which effect their bottom line negatively. Home improvement, pump and generators, roofing and building material, Engineering and Construction companies all benefit from Hurricanes as the necessity for their goods become dire.
These storms are bad for the residents but good for these industries and the people that work in these fields. In the coming days, several stocks that are affected by hurricane Harvey will offer investors short term opportunities to make money on the upside and the downside of the aftermath.
Bullish stocks for you to consider are HD, LOW, BECN, AWK to name a few. Investors are betting on these stocks moving upward due to the purchase of the before mentioned items like plywood, roofing materials and bottled water.
Bearish stocks for you to consider are ALL, TRV, CB, and GM. Traders are banking on these industries having downward movement primarily due to the catastrophic losses that insurance companies will have to cover.
Investors will be looking for opportunities to make money from companies that benefit or are harmed by hurricanes and as a trader you must began to capitalize on the markets in the same manner.
I prepared for this hurricane season back in April and introduce my community to my Hurricane Watch list that exposes hurricane sensitive stocks to trade when these storms begin to roll in.
The Atlantic hurricane season runs from June 1 to November 30 pretty much every year. Experienced traders who have traded for decades understand these annual patterns and are well prepared to capitalize when disaster strikes. I would like to pay it forward by passing on this market wisdom that you don’t find in books but only by experience.
Feel free to check out my Hurricane Watchlist below and make it yours for free.
While efforts are already underway to restore and rebuild we can all pitch in any way we can.
Please send relief to the victims of hurricane Harvey. You can easily donate as low as $5 dollars through Google to help those in need. Just Google search “Hurricane Harvey” and look for a Donate icon. Google partners with the Center of Disaster Philanthropy (CDP).