Good point but it does not mean that it will start to outperform from Jan 1st 2013. It means that most probably it will be a better performer compared to other DOW components by Dec 30 2013. It does not even mean that it will have a positive YTD gain in 2013. MCD can have -7% YTD in 2013 and still be the best component because the others are doing worse that -7%.
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MCD is in trouble !
- Thread starter hajimow
- Start date
Good point but it does not mean that it will start to outperform from Jan 1st 2013. It means that most probably it will be a better performer compared to other DOW components by Dec 30 2013. It does not even mean that it will have a positive YTD gain in 2013. MCD can have -7% YTD in 2013 and still be the best component because the others are doing worse that -7%.
Quote from hajimow:
It means that most probably it will be a better performer compared to other DOW components by Dec 30 2013.
Then why bet against it?
It does not even mean that it will have a positive YTD gain in 2013. [/B]
The Dow is a simple index with many trading vehicles - if you "know" how one component will move relative to the rest, it's straightforward to construct a composite trade to take advantage of it.
More clarifications:
I don't put a stop loss in my trades. If it goes against me, I repair the trade. I don't give up. Here are my positions as of today:
1- Short MCD
2- Short ADI and short out of the money PUT
3- Long TZA and long out of the money covered call
4- Short way out of the money SPY PUTs.
All my options are weekly if the weekly options available. If not, I trade the nearest monthly options.
Once again, I have already stated that retail sales will not be good and the market will go into 5% correction. You see that today the bad news for retain sales are coming out. We should see more warnings from retail companies. TGT, Kohls, Wallmart, should all warn soon.
I don't put a stop loss in my trades. If it goes against me, I repair the trade. I don't give up. Here are my positions as of today:
1- Short MCD
2- Short ADI and short out of the money PUT
3- Long TZA and long out of the money covered call
4- Short way out of the money SPY PUTs.
All my options are weekly if the weekly options available. If not, I trade the nearest monthly options.
Once again, I have already stated that retail sales will not be good and the market will go into 5% correction. You see that today the bad news for retain sales are coming out. We should see more warnings from retail companies. TGT, Kohls, Wallmart, should all warn soon.