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Basic Materials Sector Review April 17

In this video, we’re going to discuss the basic materials sector. This has been a fun sector. So last week was Sherwin Williams. I don’t know what we’ll go over it. When we get to Sherwin Williams this is dewpoint or DuPont. You notice we are in a squeeze. That’s starting to turn from a negative to a positive. So it’s starting to gain a little bit of momentum positive with one to two touches. Recent touches. Now, obviously back here. Oh, look at this. So yeah, it used to be support. Got rejected once got rejected twice. Found support down at the, the 74. If it can find a little bit of momentum, then I would say, I mean, if the market continues to go up, then I don’t see any problem with, with the point with the Pont breaking out of the 79 39 with the target of 83. Duh. Yeah, I like that one, but what could also happen is it hits this line, comes back down here. Halfway has gained some support and then takes off again. Let’s just remember that in the back of the head, it looks, it looks pretty good, right? It looks pretty good, but there might be better now for Dow chemical.

All right. I like Dow chemical a little better, right? Although it’s only, it’s not very much of a, a bump. Well, no, it’s about $4. The reason I like it, one we’re in a beautiful squeeze. We’ve just hit the F the 50. I mean, this is in early March, but we just retested down here twice. Where are we just broke out, came back down of this last breakout. So we made a new high now and we held the 64. If we, if this doesn’t get rejected, come Monday and we can still hold this 64 60. Then look for the next move to 68, but watch out for earnings on four 22. So that’s going to have that’s. I mean, that’s literally don’t touch it until after earnings and then decide what’s going on

Mosaic. I like it. We are

We were around like three 18. This is March 18th. It hit a tire of 35 20, then got rejected all the way down to 28. Now it’s not, it looks like it might break again. If it were to break, look for the 36, which is basically 33, 86 to 36 to the 38, depending on how much it breaks out this, I liked this one way better than the other one. Let’s go ahead and let me get my piece of paper. Sorry about that. And then I want to look at the options. What kind of options do we have on this play? Let’s check out the options on mosaic. I have a, I have a pretty good feeling. We’re going to find pretty one, like relatively cheap options. Cause it’s not a very large stock. It’s only $67. So we’re looking probably about like 75 to maybe a dollar 25 a contract let’s look.

Okay.

Oh, they have weekly options as well. Just since we’re going to go come like uniform, we’ll go 20 or 34 days out. You see what I’m saying? So we’re looking, let’s go back here. We’re looking at maybe 38 as our target in 38 and 34 days, the 30 eights are going for 64 cents. We can go to the 30 sixes, which gives us kind of halfway gives us $2 pro or basically you have $2 profit. I had an expiration if it hits 38 well, $1 profit. If it hits 38 on target, which isn’t the greatest, but it’s not the worst either. Yeah, I kind of liked it for a dollar. You can’t really go wrong. Of course. Now my pencil, there it goes Mohs 36 may. Okay. Now look at the six days from now. See, look at that. If this were to have a huge day then yeah. You’d bank, but I’m good with not with giving us the gift of time. Next B a S F.

Yeah. It’s About to break out. Earnings are coming up soon. Doesn’t have any options. Just be careful. Earnings are coming up soon. Other than that, I kinda like it. It has like the ability to hit 26 we’re breaking out, or we just broke out of this, which was 2019, just keeping an eye on earnings and it looks pretty decent. Buy, sell. Let’s check you out.

Earnings are coming up pretty soon. So again, be careful. I, I don’t like the way that yeah, I see we’re in a huge squeeze. We’d been in a squeeze since like March 18th Four 30. Well look what happened after the last earnings they’ve gone straight up from like 80 to one. So 30, 30 point move basically. First kind of bring him all the way out. I mean, it’s been a consistent, like straight up fallen our lines. It’s relatively, it’s actually really close. It just hit the 23, four days ago. Last Monday, I guess our momentum is shifting higher. The one 16 isn’t like the great or isn’t the furthest apart. Or the furthest way. I kind of like it with a good

Internet. We’ll get that break out. Basically, since it hit the 50, it has gone parabolic and thought he was only $6, but it’s going, I would like to see this to, to hit this, come back down to the 56 48, then look for the 61 or the 69 48, but it’s had a huge run, three huge three big, big days brought us from 54 to 57, kind of bringing us down give us some support and then take back off about probably she is going to do that as it could just keep going from here. But I like it. I would just want to buy them and pull back a little better. Rio Tinto got opened on an open interest on this one. It’s the breakout. I wouldn’t buy it right here. Cause it just broke out three days ago. Ooh, I’ve been, I stand corrected. Look at this to fill the gap. It would be basically 5% gain

I think it has action to fill the gap, honestly. And if it fills that gap, then look out for 92 85, cause it’s coming full steam ahead.

Ooh. a recent breakout look at this. This is just clustered all over du du, du, du, du. So if it were to, to break in cert trending, we have a huge, huge, huge point of resistance at two 31. But if it breaks out of that, basically over here, which is almost there 25, so two more dollars, then sky’s literally the limit on something like this. We have an earnings on four 27. So sometime this week, next week, but look for this to continue to go higher. There’s a reason it’s going higher. It’s most likely because they, whatever their business they’re in, they’re doing really well. Scott’s miracle grow. I’m not too happy with this one.

It’s gonna, it’s about to hit the, the 50 hour or yeah, I’d wait for it to hit the 50 and kinda cause look it’s had in the past, it’s gone all the way down to the hundred and then bounce. Just be careful. It has the project or the, the commonality of going to the a hundred and then bouncing strong offer the a hundred. But just be careful. Sherwin Williams. Look at this bump all the way up last, last day I tried looking for male or for reason couldn’t find it. So going into yesterday

I had the 60 threes, so I think I got it. I got them right around here, right at 63 30 threes. I literally thought I was just dead and then woke up to $400. So that was not a bad day. Look for two 72, if we can hold the two 72 and two 89 and so on. All right. So far we have the MOS, may 36 contract that I’m the most gung-ho about. All right. Talk to you later.

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