In what has been a horrible month for buying stocks and trying to trade breakouts, because of the drop in the market many stocks have simply been crushed and killed.
But now a stock has emerged out of the mess to line up for a Two Fold Formula setup.
And you may already know about it, because I did a post about this stock a week ago as a pair trade against dope stock CGC.
In this post, I said that CGC was a stock to avoid as the dope sector rolled over while this stock was one to buy instead of it. A pair trade could even be done by shorting CGC and going long this stock to cut down on stock market risks.
And now one week later as the stock market has fallen this stock has only held up.
I’m talking about tobacco giant Standard Diversified.
Check out the chart for SDI now.
While the stock market has dumped in October, SDI has bucked that trend and simply consolidated in a triangle pattern after doubling from May to August. Price resistance for SDI is now at $17.
And as it has done that its on balance volume indicator has only ticked higher to show us that is actual accumulation in the stock.
People want to trade past fad stocks that have crashed, but some sectors actually are firming up and the right stocks in those sectors will lead the way.
SDI is a tobacco giant and is in a defensive sector that is emerging out of this stock market mess.
This Two Fold Formula pattern is right in front of us.
To understand how this pattern works and apply it yourself along with me to future stock situations just click here.