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Du Pont (DD) Meets Our $68.00 Upside Target

Posted on: Friday, April 18th, 2014

E I Du Pont De Nemours And Co. (DD) met our $68.00 initial upside target earlier this month, on April 2nd, which was first mentioned in our August 5th 2013 Keys To This Week, to capture a $8.41 per share, 14% advance in the stock in a little more than 8 months.

Per our August 2013 report, we were particularly interested in DD because of its tight and stable positive correlation to the Materials Sector SPDR ETF (XLB), which at that time was also historically under-invested according to our own asset flow-based metric, and amid favorable conditions for upcoming strength and relative outperformance.

During that same 8 month period XLB has coincidentally risen by 18% and has outperformed the S&P 500 SPDR ETF (SPY) by 6%.

Noe that profit-taking driven corrective declines often emerge once major upside targets like this one are met.