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A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Thursday, April 9, 2009

Homebuilder retailer anomally


Why has Home Dopot outperformed Lowes by such a huge margin Year to Date?

Looking at the charts separately HD is over it's 200 day EMA and LOW is just now approaching the underside.

Could it be that HD had a HUGE short volume on the way down and those traders have been covering? Or is HD truly 20% better than LOW going forward?

Either way because of such a huge disparity could a safe trade be to short HD and get long LOW using out of the money October Options until this gap is closed?

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