• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Polaris Industries Leads the Way on the Upside in the Outdoors Bull Market

Look to trade PII from the long side.
By BRUCE KAMICH
Jul 29, 2020 | 09:28 AM EDT
Stocks quotes in this article: PII, THO, BC, CWH

During Tuesday's Mad Money program, Jim Cramer told viewers that during most economic downturns discretionary spending plunges. That's why it was shocking to see the numbers from names like Polaris Industries  (PII) which makes ATVs and snowmobiles, Thor Industries (THO) , the RV maker, and Brunswick Corp. (BC) , a leading boat and camping equipment maker. The outdoors bull market was also alive and well with Camping World Holdings  (CWH) , as people choose the ultimate social distancing vacations

 
All four companies are in uptrends but let's check the charts of Polaris Industries because it gapped up to a new high yesterday. We looked at the charts of PII back on June 11 and wrote that, "PII has surged into the top end of a resistance zone. Prices could break out on the upside for further gains but right now I think a pullback of some degree is in order. Let's wait and see how that unfolds before making a decision."
 
With the rally in PII yesterday on heavy trading volume another look at PII is a good idea. 
 
In this daily bar chart of PII, below, we can see that prices gapped higher Tuesday, making a new 52-week high. Trading volume surged. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line.
 
The On-Balance-Volume (OBV) line has been strong and tells us that buyers of PII have been more aggressive. This matching strength helps to confirm the price gains.
 
The Moving Average Convergence Divergence (MACD) oscillator looks like it will turn upwards for a fresh outright buy signal. 
 
 
 
In this weekly bar chart of PII, below, we can see that prices have broken out over the highs of 2019. This is bullish and opens the way for further gains. Prices are above the rising 40-week moving average line.
 
The weekly OBV line is already broken out over the highs of 2019 and 2018. The MACD oscillator crossed above the zero line last month for an outright buy signal.  
 
 
In this weekly Point and Figure chart of PII, below, we can see an upside price target in the $185 area. 
 
 
 
Bottom line strategy: PII is leading the way higher for a group of stocks (see the first paragraph above). Trade PII from the long side. Buy in the $110-$105 area and risk a close below $95 for now.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Mad Money | Sports

More from Investing

You Know What They Say About Dull Markets ...

James "Rev Shark" DePorre
Aug 18, 2022 4:37 PM EDT

Don't short 'em. Let's look at how investors responded to the thin trading and lack of big news -- and what we can expect to come.

With Oil, Keep Your Eyes on the Prize by Focusing on Supply

Jim Collins
Aug 18, 2022 3:59 PM EDT

The earth's oil supply is only going in one direction -- down -- and here's what that means for investors.

I Dislike Blue Apron But Here's a Trade, No Strings Attached

Mark Sebastian
Aug 18, 2022 2:30 PM EDT

The company is never going to make money and is likely heading back below $3 a share.

Europe's Recession Is All About Gas

Maleeha Bengali
Aug 18, 2022 1:30 PM EDT

Prices could very well stay elevated for a long time despite the economy going into a manufacturing recession.

The VIX and SPIKES Have Similarities, But There Are Meaningful Differences

Mark Abssy
Aug 18, 2022 12:00 PM EDT

And if you feel that volatility is an asset class that has a place in your strategy there are 2 funds that may be worth a closer look.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:23 PM EDT STEPHEN GUILFOYLE

    We're Cleaning Out This Retailer From the Bullpen

    Check out the latest moves in TheStreet's Stocks U...
  • 10:24 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    To Improve Your Trading and Investing, Spend More ...
  • 08:44 AM EDT PETER TCHIR

    CPI Beats Expectations, But Maybe Not the 'Whisper'?

    Slightly better-than-expected inflation across the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login