Long O(versold) - see what I did there?
تم تحديثه
Another unlikely hero, 
O has become oversold for me 13 times in the last year (since the end of last fall's mini-crash). It has only stayed oversold more than 2 days twice in that time.
Additionally, over 80% of the lots that would have been purchased in that time would have been profitable trades within 1 trading week and the most common length of time it took to become profitable is 1 trading day. All trades would have been profitable except (so far) the ones that would have opened yesterday and today.
It doesn't hurt that it's nearing support, either. Also, the rate cut will help all REITs simply by making their dividend more competitive vs. CDs and bank rates. I think this selloff is a mistake, too.
A lot of traditional "conservative" dividend payers like
PG 
PEP 
CL 
KO and 
DUK are on sale today just because I think people are moving to more risk on names because of the rate cut. The drop in consumer staples 
XLP might also be related to the 50bp rate cut falsely signaling the Fed thinks the consumer is weak, but consumer discretionary 
XLY is very strong today, so I don't think that argument holds water. If that was true, I'd say XLY falters before XLP does. People can go longer without a new TV or new phone than they can staples if they're struggling.
If the general sentiment becomes risk off for any reason again next week, and I think it could despite the cut, "safe havens" likeO or 
HON could benefit from rotation. Or they could keep going down and I just add more. If they do, I suspect some of my other more risk on ideas will be doing well while I wait.
O is also nice if you get stuck holding a while because it pays a monthly dividend. I don't pin hopes on dividends, but you know me - I'll never turn away free money.
I will sell any lots as soon as they become overbought and profitable.
So I'm going long at 60.80. I'll add if it stays oversold.
And by the way, I'm not apologizing for my typically boring charts. Charts that make me money don't need to be beautiful. The call just needs to be correct. But I spruced this one up with some pretty colors just because it's Friday. Have a good weekend!
This is financial edutainment. If you trade my ideas, it's on you.
O has become oversold for me 13 times in the last year (since the end of last fall's mini-crash). It has only stayed oversold more than 2 days twice in that time. Additionally, over 80% of the lots that would have been purchased in that time would have been profitable trades within 1 trading week and the most common length of time it took to become profitable is 1 trading day. All trades would have been profitable except (so far) the ones that would have opened yesterday and today.
It doesn't hurt that it's nearing support, either. Also, the rate cut will help all REITs simply by making their dividend more competitive vs. CDs and bank rates. I think this selloff is a mistake, too.
A lot of traditional "conservative" dividend payers like
PG PEP CL KO and DUK are on sale today just because I think people are moving to more risk on names because of the rate cut. The drop in consumer staples XLP might also be related to the 50bp rate cut falsely signaling the Fed thinks the consumer is weak, but consumer discretionary XLY is very strong today, so I don't think that argument holds water. If that was true, I'd say XLY falters before XLP does. People can go longer without a new TV or new phone than they can staples if they're struggling.If the general sentiment becomes risk off for any reason again next week, and I think it could despite the cut, "safe havens" like
O or HON could benefit from rotation. Or they could keep going down and I just add more. If they do, I suspect some of my other more risk on ideas will be doing well while I wait.O is also nice if you get stuck holding a while because it pays a monthly dividend. I don't pin hopes on dividends, but you know me - I'll never turn away free money.
I will sell any lots as soon as they become overbought and profitable.
So I'm going long at 60.80. I'll add if it stays oversold.
And by the way, I'm not apologizing for my typically boring charts. Charts that make me money don't need to be beautiful. The call just needs to be correct. But I spruced this one up with some pretty colors just because it's Friday. Have a good weekend!
This is financial edutainment. If you trade my ideas, it's on you.
ملاحظة
If it holds these levels today, I'm out at the close. It's getting overbought short-term now.أغلقت الصفقة: تم الوصول للهدف
Sold the entire position at the close for 63.46. ملاحظة
Trade summary (for my records)
Wins 1 Losses 0
Avg gain/lot = +4.4%
Avg days held/lot = 7 trading days
Return per lot per day held = .63%
Annualized return per lot (per day return x 252 trading days) = +159%
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