Our investing research routine includes scans of all the major sectors / industries, as well as underlying stocks.
In today’s article, we look at the Autos Sector, and more specifically two stocks setting up for a potential pairs trade.
The driver for this idea is a bullish trigger signal we received Friday for Lear Corporation NYSE: LEA.
With positive money flow, the LEA’s stock price has broken above the near-term downtrend line from the December high.
So we are bullish on this one with a stop.
For those looking at an offsetting hedge, we see a pairs opportunity in Axalta Coating Systems NYSE: AXTA which has a weak model score.
So LEA (long) versus AXTA (short) idea.
Lear Corporation (LEA) vs Axalta Coating Systems (AXTA) Chart
The author may hold positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
