MKM Partners highlights 10 sector buy/sell pair trades

Jun. 08, 2022 6:26 AM ETPfizer Inc. (PFE), IBMSP500, SPY, XLC, TMUS, CMCSA, XLY, GPC, WHR, XLP, MNST, CHD, XLF, MTB, KEY, XLV, SYK, XLI, CHRW, EFX, XLK, NTAP, XLB, LYB, DD, XLRE, HST, PEAK, XLU, ETR, FEBy: Kim Khan, SA News Editor12 Comments

Pocket Twos

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The technical research team at MKM Partners comes out with pair trade ideas for ten sectors.

"Sentiment continues to be extremely washed out," J.C. O'Hara, chief market technician, wrote in a note Tuesday. "This sort of investor behavior has historically preceded a bounce, which is exactly what happened."

"The bear market bounce, which started late May, paused right where it should, under heavy technical resistance at 4,200 on the S&P 500 (SP500) (SPY). Bottoming behavior takes time, thus patience is required. This week we turn our attention to pair trade ideas."

The trades are:

  1. Communication Services (XLC) - Buy T-Mobile US (TMUS) with techincal target $150. Sell Comcast (CMCSA) with technical target $36.
  2. Consumer Discretionary (XLY) - Buy Genuine Parts (GPC) with target $158. Sell Whirlpool (WHR) with target at $138.
  3. Consumer Staples (XLP) - Buy Monster Beverage (MNST) with target at $99. Sell Church & Dwight (CHD) with target $80.
  4. Financials (XLF) - Buy M&T Bank (MTB) with target $205. Sell KeyCorp (KEY) with target $15.85.
  5. Healthcare (XLV) - Buy Pfizer (NYSE:PFE) with target $60. Sell Stryker (SYK) with target $193.
  6. Industrials (XLI) - Buy C.H. Robinson (CHRW) with target $122. Sell Equifax (EFX) with target $161.
  7. Info Tech (XLK) - Buy IBM (NYSE:IBM) with target $152. Sell NetApp (NTAP) with target $57.
  8. Materials (XLB) - Buy LyondellBasell (LYB) with target $125. Sell DuPont (DD) with target $61.
  9. Real Estates (XLRE) - Buy Host Hotels and Resorts (HST) with target $26. Sell Healthpeak Properties (PEAK) with target $26.50.
  10. Utilities (XLU) - Buy Entergy (ETR) with target $134. Sell FirstEnergy (FE) with target $38.50.

See the additions and deletions to BofA's Alpha Surprise Portfolio.

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