SHW Forecast + Trading Strategies


Bullish Case: Strong ROCE, analyst upgrades, dividend growth, and resilient price action support a bullish outlook despite macroeconomic headwinds.


Bearish Case: Housing market weakness, recent environmental issues, and elevated price-to-book ratio present downside risks amid market volatility.


Potential Outcomes: Continued growth (40%), housing market impacts (35%), market volatility (25%). Historical projections indicate 57% bullish risk across tenors.


Trading Oracle: Initiate bullish debit spreads targeting December 2024. Buy $320 calls, sell $350 calls. This strategy captures upside momentum, leverages mean-reverting trends, and takes advantage of favorable implied volatility structure, offering a high reward:risk ratio.


July 23, 2024


Sherwin-Williams Forecast

SHW      Sherwin-Williams











Correlated Assets

Assets that tend to move strongly with SHW



TREX Forecast + Options Trading Strategies   TREX  TREX Co. (0.97)


NAIL Forecast + Options Trading Strategies   NAIL  Direxion Daily Homebuilders & Supplies Bull 3X Shares (0.96)


MAS Forecast + Options Trading Strategies   MAS  Masco (0.96)


BAM Forecast + Options Trading Strategies   BAM  Brookfield Asset (0.95)


ITB Forecast + Options Trading Strategies   ITB  BTC iShares U.S. Home Construction (0.95)



Uncorrelated Assets

Assets with little price relationship to SHW



ILMN Forecast + Options Trading Strategies   ILMN  Illumina (-0.0)


UVIX Forecast + Options Trading Strategies   UVIX  VS Trust - 2x Long VIX Futures (-0.0)


SVOL Forecast + Options Trading Strategies   SVOL  Simplify Volatility Premium (-0.0)


DT Forecast + Options Trading Strategies   DT  Dynatrace (0.0)


GT Forecast + Options Trading Strategies   GT  Goodyear Tire & Rubber (0.0)



Anticorrelated Assets

Assets that tend to move strongly against SHW



SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.87)


TZA Forecast + Options Trading Strategies   TZA  Direxion Daily Small Cap Bear 3X Shares (-0.91)


SDOW Forecast + Options Trading Strategies   SDOW  ProShares UltraPro Short Dow30 (-0.93)


DOG Forecast + Options Trading Strategies   DOG  ProShares Short Dow30 (-0.94)


DXD Forecast + Options Trading Strategies   DXD  ProShares UltraShort Dow30 (-0.94)





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