WAG outperformed CVS going into the summer then got hit after announcing an acquisition which didn't include a corporate inversion tax-reduction scheme. Now WAG is turning up from deeply oversold as CVS hits a new high as they dump cigarettes. This is a ratio-trade where you see that two stocks move together, then when they separate it sets up a trade to profit from the laggard returning back to the mean (or average).
Earnings aren't due for a month - not the early October earnings release date.
WAG Buy 61.42 last, CVS 80.40 last (sell short)
Tim 10:42AM Thursday, Sep 4 2012
Comments
timwest
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63.95 on Friday, Sep 5th at the close... +2.53 pts or 4% in 1+ days.