Pairs Trade – DY vs DV

Time to spruce up the trading into Turkey Day next week with a pairs trade idea of DY (Dycom Industries) versus DV (Devry Inc). Here is the first chart:

Devry is attempting a bottoming process here above the 36 level but looks vulnerable for a drop. The Stochastics is embedded and will be the clue to watch for a hold here, or the expected Trap Door move down. This is the Short component to the pairs trade. Now on to the Long component.

Dycom had formed a nice Ascending Triangle and is on a Breakout Watch over the 20.50 level. Here is the chart:

As you can see in the chart above the Daily candles are pressing up on the Breakout point and the Stochastics are showing some potential to cross up.

Here is the trade:

  1. Short 1 lot of DV
  2. Long 1.85 lot of DY

Enjoy the rest of Options Expiration week (it has not disappointed).

 

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