Afraid to Trade Blog - Latest Comments in Johnson and Johnson JNJ Takes an Unexpected Turn

Re: Johnson and Johnson JNJ Takes an Unexpected Turn

Corey Rosenbloom — Sun, 08 Mar 2009 21:18:12 -0000

Henry,

Agreed, but it - in my opinion - it shouldn't have collapsed as quickly as it did. The RS line has certainly beat that of the S&P.;

Maybe it would be best as a hedge, as in short SPY and long JNJ.

I've always found pairs trading interesting.

henry — Sun, 08 Mar 2009 17:27:36 -0000

Yes, but for those who must be in equities, the relative perf chart shows that it still has been a relative winner:
http://stockcharts.com/h-sc...

Corey Rosenbloom — Sat, 07 Mar 2009 14:50:02 -0000

True.

Particularly devastating in this case, considering how well people expect Consumer Staples to hold up in a downturn.

Reggie Perrin — Sat, 07 Mar 2009 12:04:11 -0000

Excellent analysis

It is the false breaks of the "obvious" which have proved so dramatic