Generally, a security that loses more than 9% in the first few months of the year doesn’t inspire confidence. That’s especially the case with cruise ship operator Carnival (CCL). Not only has CCL stock underperformed, the company has also ignominiously attracted an 88% Strong Sell rating from the Barchart Technical Opinion indicator. Still, there might be a contrarian play here waiting to be exploited.
No, I haven’t lost the plot (at least not completely). Obviously, with the Iran conflict at the forefront — along with the implied economic catastrophe looming if a resolution isn’t found soon — the concept of pushing a discretionary trade isn’t appealing. However, we must also consider the broader reality. Outside of a chaotic kinetic event, people are still going to want to travel.
