Du Pont (DD) is deeply oversold and out of favor, thanks to its heavy cyclical nature and chemical exposure.
I like how the volatility of DD shares have quieted down over the past few days here, which can signal that the sellers are done with their selling for the time being.
The way to put this trade on is to wait until the DD starts to outperform SPY on a given day and THEN put the trade on. It's a simple rule to follow when putting on PAIRS trades.
Remember the old saying: Buy SHEEP, Sell DEER.
(Translates to Buy Cheap, Sell Dear)
"Dear" means when everyone loves something.
Cheers.
Tim
4:06PM EST 9/15/2015
ปิดการเทรด: ถึงเป้าหมายการทำกำไร
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Monster profit here on this trade.
Banking the gain.
ความคิดเห็น
OlegMDev
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I thought chemicals will only do well if oil price stays low. If everyone has a prediction that oil will be around 60 next year, will DD still make good money in the chemical space? Just looking at my charts, I don't think value people will start buying DD until it reaches around the $40 to $44 level. $42.50 on the 5yr chart if looking for the 1st short term long play. Has DD been trading around the $40 dollar range since 1996 with only one 2:1 split? At this price here at $48 I don't think this stock is on anybody's radar. Even for dividend i bought GE for an industrial instead of DD. XOM,CVX,COP,DO for oil and gas. Building a Standard Oil Rockefeller portfolio. Hehe.