Thursday, June 26, 2014

"CHITS": Charts in the Spotlight: DuPont (DD). Market anticipates well....

I tweeted the chart below as today’s “CHITS” (Charts in the Spotlight).  

We don’t own DD, but on a pullback, it could be interesting.  
What was noteworthy about today’s after-hours disappointing announcement by the company was how well, in the weeks preceding today, the market anticipated trouble!  
Take a look at the relative price performance in the lower parts of the the chart above to see how DD performed relative to the S&P and to its sector ETF, XLB.  In both cases, significant under-performance, far more than the sector itself vs the S&P (seen in the lowest section of the chart).

Evidence of good Street analysts?  Or coincidence?  Or something more insidious, like someone knew something?  

You’ve got to wonder!

Just a thought…..

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(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
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