The Gun Trade May Be On: $SWHC $RGR

The rhetoric associated with the Presidential primaries has led to fears that America’s right to bear arms, as described in the 2nd Amendment, could be in jeopardy. The passing of Supreme Court Justice Antonin Scalia on Saturday will likely be a gas can thrown on the fear fire as it is perceived as unlikely that the President will appoint a Justice, to replace Scalia, that is friendly to the 2nd Amendment.

This makes the gun stocks like Smith & Wesson (SWHC) and Sturm, Ruger & Co. (RGR) worth a serious look for a potential swing trade. These stocks were setting up nicely prior to Saturday’s sad news.

Here is the $SWHC chart:

SWHC

And here is the $RGR chart:

RGR

Disclosure: The author holds no positions in any of the stocks mentioned in this post but may take a position in the next 48 hours.

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