CE - Dec 24 100SMA StrongWeak BounceCE
Premarket entry to capture price as it is within our Stdev range and we can be ahead of the crowd as we expect the greater force (RUT) to continue dropping
Sector: Materials - Chemicals
9 Dec - Scott Richardson, currently Chief Operating Officer, has been appointed Chief Executive Officer and will join the Board of Directors, effective January 1, 2025.
Nov 24 earnings
- CEO Lori mentions demand struggles
- Reduction in the construction, paint and coatings market
- Demand destruction for derivatives, particularly in China for things like EVA into the solar markets
- BMO Capital Markets downgrades CE - “the chemical maker faces ongoing weakness in Europe and China amid excess production capacity for products such as nylon and what are known as acetyls.”
- Revenue is stagnant, but there is EPS growth
ADR 3.16%
Short Interest: 4.64%
Does it respect the H1 100SMA (Min 3Months): Yes
Is it a Hype Thematic (AI, Solar): China’s demand deceleration epecially in EVs and Solar.
100SMA StrongWeak Bounce 🏀 (0.5R) v1.0
Trading risk at 0.5R as we are testing this strategy
This trade model is based on us riding the 100SMA trend waves of the strongest and weakest companies. It only executes well when greater force (RUT & SPX) is trending. Entries are at greater force key levels when it is consolidating. When greater force is taking off it is too late.
Entry
Within Stdev 100 zone
SL = ATR14 * 2 (Run full course no early exits)
Trailing stop (Previous Day Low or high)
Price launch off (D1)
D2 Closes
D3 Move SL to D2 Low
