With the incredible spike in the VIX last week, we should all take this as a wake-up call that the markets will be increasingly volatile headed into the November election.

So, the time to develop a Q4 defensive playbook is now.

The following are some ideas that can perform well even if we see a selloff, increased volatility, or even a recession:

Defense/Aerospace & Consumer Staple Plays: Our old friend Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) might be back in play headed into Q4 – along with our covid consumer staples winner Clorox Company (CLX).

Biotech: One name that’s held up incredibly well in the midst of intense market volatility was our friend AbbVie Inc. (ABBV), which could be a safe-haven headed into Q4.

However, there’s another big opportunity that I’d like to share with you right now – and it stems from the latest earnings report from Disney (DIS).

Here’s the scoop…

Disney’s Theme Park Weakness Leads to Cruise Ship Strength: For me, the biggest takeaway from the latest Disney earnings was the fact that their theme park division is struggling.

Theme Park perks that were previously free (such as airport shuttles, hotel guest parking, and fast-past line options) are no longer being offered as comped incentives.

Add in higher prices for park admissions, restaurants, and hotels, and consumers are now realizing that cruises are 20% cheaper than theme-park alternatives.

With theme park operational and administrative costs up 37% since 2019 (according to JPMorgan), it seems like a trend shift over to cruises will be here for the immediate future.

With pent-up demand now creating a strong back-log, the outlook for cruise liners appears strong. JPMorgan just upgraded Royal Caribbean (RCL) with a $210 price target, which is +36% above their current price around $154.

But for me, the stronger opportunity comes from Viking (VIK), which is the newly-public, higher-end cruise liner.

YOUR ACTION PLAN

A very noticeable “W” on the daily chart gives me the indication that VIK is now poised to re-test the recent highs around $37.00. To see how we’re playing this trade, you’re invited to join us in our new live streaming service called Catalyst Cashouts LIVE. Tomorrow at 2 p.m. EST. I’ll reveal the exact trade for you to make. Join Cashouts today – and join us to get this new trade tomorrow afternoon!

YES! Sign Me Up for Catalyst Cashouts to Receive This New LIVE Trade Tomorrow.

MONDAY MARKET MINUTE

• The Big Picture: Trading remains choppy amid economic uncertainties, geopolitical risks, and U.S. election concerns. There’s tension between hard landing worries after weak jobs data and soft landing hopes with 2% growth forecasts. Investors are closely watching Fed funds futures for implications on potential rate cuts in the coming months. Analysts await upcoming data and Chair Powell’s comments at the August 22-24 Jackson Hole symposium for clearer direction.
• Sector Performance: The IT sector is showing strength, contributing to positive performance in tech-heavy indexes. Consumer staples are experiencing some weakness, particularly affecting more traditional blue-chip stocks. Dip buyers remain active, particularly in technology stocks.
• Stocks to Watch: Advanced Micro Devices (AMD) could gain from Intel’s (INTC) weakness. DoorDash (DASH), Monday’s top Nasdaq 100 performer (+3.5%), may see a move to $130. Uber Technologies (UBER) shows global dominance in transportation, with Morgan Stanley upgrading to a $95 target.
• Economic Calendar: Two crucial economic reports are on deck this week: PPI on Tuesday morning and CPI on Wednesday morning. These reports could significantly impact market sentiment and direction, potentially causing volatility in either direction. Their outcomes may influence Fed policy expectations and, consequently, asset valuations across various sectors.