No AI was used or consulted to make this post, therefore it may be inaccurate or have missed key information. NFA
Whenever gold spikes, publicly traded pawnbrokers usually get a sympathy spike. You can see this in the historical relationship between FirstCash, EZPawn and Gold, shown here through ratios. The absolute level on the Y axis isn't important here, what matters is the directional movements.
FCFS divided by GLD 1 month chart
EZPW divided by GLD 1 month chart
What else usually spikes pawnbroker stocks? Interest rates.
Now, look at what these stocks did on Friday. Fridays are generally considered a "risk off" day where stocks considered moderate to high risk are sold. Conversely, stocks with high buying interest on Friday are more likely to be high-conviction trades. Stocks with high institutional buying interest on Friday (huge volume, tons of resting orders filled) are even more likely to be high-conviction institutional trades.
FCFS clean break above the 10, 20, and 50 day moving averages
EZPW clean break above the 10, 20 and 50 day moving averages
Big volume and broke through all 3 major moving averages. I think these companies have solid enough balance sheets for a short term trade (companies that don't are more likely to get dumped at the first sign of trouble):
FirstCash: P/E 25.6, EPS 8.77, debt to equity of around 1.0
EZPawn: P/E 16.2, EPS 1.99, debt to equity under 1.0
My positions (bought on Friday after hours): 100 shares of EZPW and 20 shares of FCFS. ($7,700 of exposure). Targeting a 8% move before I sell half of both positions.