The market continues to rise, and the horrific falls in stocks seem like yesteryear. Rishi Sunak is spending money like it’s going out of fashion. There were several trading opportunities in his speech. It was widely expected that hospitality and service sectors would receive a boost and be the beneficiaries of Rishi’s seemingly unlimited spending prowess.

Yet despite this, many hospitality stocks hadn’t moved. And if they hadn’t moved, then it meant there were two possibilities:

  1. Rishi’s spending was meaningless and had absolutely zero effect on the futures prospects of hospitality companies, or

  2. It wasn’t priced in

Personally, I felt that the second option was more likely. This is because I didn’t see how a boost could not have an effect on the future cash flows of hospitality companies, and therefore it made no sense that the stock prices hadn’t moved. If you load up your broker charts, you will be able to see the price movements on these stocks – some reacted instantly such as J D Wetherspoon (LON:JDW) as the algos kicked in – others were slow to respond. 

It’s always worth listening to potential market moving news, and looking to see if what has been expected has been priced in. It may offer a scalp trade or two. 

C&C Group plc

C&C (LON:CCR) is an international drinks company which is a manufacturer as well as marketer and distributor of both a variety of alcoholic and non-alcoholic beverages. Some of its brands are well known, such as Magners, Bulmers, and Tennent’s. It picked up some of the scraps in the Conviviality fire sale back in 2018 and is now one of the biggest on-premises suppliers in the UK.  

It makes sense then, that the stock price has seen some damaging in the past year. Pubs, restaurants, hotels, and other places which offer bar areas have been shut, and only now are the slowly beginning to awaken and re-open – those that are left, that is. Let’s not forget that once furlough ends, many business models will now be uneconomical and many hospitality units will have closed their doors forever. 

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We can see in this instance that the 200 MA provided an excellent risk/reward trade on the short side when everything began to…

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