Reports of a mega deal between DuPont (DD) and Action Alerts PLUS holding Dow Chemical (DOW) will have teams of journalists running around to cover every conceivable angle and nuance of the proposed hookup. I will respond by just looking at the charts. Keep it simple!
In our most recent updates/forecasts on DD, we suggested booking partial profits. This morning, with DD trading near its calendar-year high (see the chart below), we would look to book profits on the remainder of your holdings. I am sure in the hours and days ahead that people will find reasons using various metrics to argue that DD is worth this or that. Meanwhile, I am very happy to capture 90% of a move.
With respect to DOW, we were looking for a move to the $70-$75 area. DOW is up since our recommendation to a new 52-week high, but here too I would look to "take the money and run" and put the money to work on the next idea. See our chart below.