With coronavirus pandemic casting a dark shadow over holiday shopping this year, Black Friday takes on a whole new meaning. Yet the retail world can still find opportunities to boost revenue, which could provide tailwinds for the Direxion Daily Retail Bull 3X ETF (NYSEArca: RETL).

It’s a short-term trade worth looking at if Black Friday sales numbers don’t disappoint this year. Then again, this year has been like no other so traders should tread–or trade–lightly.

As for the fund, RETL seeks daily investment results of 300% of the daily performance of the S&P Retail Select Industry Index. With its triple leverage, RETL gives investors the ability to:

  • Magnify short-term perspective with daily 3X leverage;
  • Go where there’s opportunity, with bull and bear funds for both sides of the trade; and
  • Stay agile with liquidity to trade through rapidly changing markets

RETL invests in securities found within the index, which is a modified equal-weighted index that measures the performance of the stocks comprising the S&P Total Market Index. RETL traders have to wonder whether the positivism surrounding a vaccine can cause consumers to open up their wallets when Black Friday comes around.

RETL Chart

“With Black Friday around the corner, American shoppers are digging into their wallets for some doorbuster deals,” a Barron’s article noted. “A successful holiday shopping season could prove, once again, the resilience of U.S. consumers despite the Covid-19 pandemic and economic struggles. That could give retail-related stocks a timely boost—but investors should also look beyond e-commerce stocks, and include related industries like storage, logistics, and digital payments on their buying list.”

“At work is what economists and strategists are referring to as a “K-shaped” recovery,” the article added. “Covid-19 has caused millions of people to lose their jobs, and has cut into the savings of many more; those folks are represented by the downward sloping piece of the K. Others, however, are employed and perhaps even saving money as they curtail travel, entertainment, dining out, and other means of spending during the pandemic. Their shopping needs remain robust (the upward line of the K). Many, in fact, are spending big on their homes. During Amazon.com’s two-day Prime Day sales events in October, the company generated more than $10 billion in gross merchandise sales, up from $7 billion in July 2019.”

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