CHV trade ideas
Chevron fundamental and technical data look goodChevron is one of the shares, that I would trade frequently because of the good fundamentals. We currently have a good long opportunity with risk/reward ratio of about 1.5.
BUY Crude Oil (OIL), SELL SHORT Chevron (CVX)How is it that crude oil is so far out of sync with the price of energy stocks?
This chart shows you very clearly how they move together, but at times they reach extremely far apart. After an extreme, they come back together in a dramatic fashion.
I can't wait until Tradingview has ratio charts so you can see what the ratio chart looks like.
The lift in crude oil futures today and the drop in CVX could be the beginning of the closing of this very wide spread.
I believe the upside here is 10% over the next month with a downside risk of 5%. Since this is a pairs trade, don't just cherry pick one side of this trade because I don't know which side of the trade will generate the profit. It could be that CVX falls and OIL stays the same.
Technical Tim
Wed, Oct 10, 2012 12:40AM EST
