Viewing the chart above, the vertical line represents the day Hurricane Harvey hit. These stocks; which fall in the automotive, home and oil industries; saw a substantial increase over the next month and all but oil is still seeing an increase.
Ford, GM, LPX and Alon. I have been mentioning and trading the first three, Alon (ALDW) is a new one for me.
ALDW appears to be forming a cup and handle going into this storm. The last storm caused ALDW to jump upward. At a p/e multiple of 16.38, this stock trades cheaper than say XOM, which is at 29.49. Also note that ALDW has a small capitalization of 739 million, making it fairly reactive to oil prices.
I'm using technicals, mainly RSI, for entry. I look for RSI to range around 50-65 on support, lower could mean a bearish move.
My portfolio holdings going through Q4,
FX trading - 10%
Swing/pattern trading - 30%
ALDW - 20%
F - 20%
GM - 20%
Ford, GM, LPX and Alon. I have been mentioning and trading the first three, Alon (ALDW) is a new one for me.
ALDW appears to be forming a cup and handle going into this storm. The last storm caused ALDW to jump upward. At a p/e multiple of 16.38, this stock trades cheaper than say XOM, which is at 29.49. Also note that ALDW has a small capitalization of 739 million, making it fairly reactive to oil prices.
I'm using technicals, mainly RSI, for entry. I look for RSI to range around 50-65 on support, lower could mean a bearish move.
My portfolio holdings going through Q4,
FX trading - 10%
Swing/pattern trading - 30%
ALDW - 20%
F - 20%
GM - 20%