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Pairs

Follow-Up of Winning Long DuPont/Short SPY Pairs Trade As soon as DD turn up relative to SPY on the day highlighted it was the time to put on the trade. Even if you waited until it went over the 10-day average of the ratio, you would have gotten in with very good risk/reward. You would have had 1% drawdown on the first day's open, then as much as a 19% gain from there to today's high, or a 16% return to the last sale. Had you just bought in on the day of publication, your maximum drawdown was 0.42% and your maximum upside was 19.79% for a worst/best ratio of over 40:1. Now that is a big trade. You can see how easy it is to graph the ratio - just type in one symbol, then the "/" backslash and the next symbol, with no spaces. Ratios often tend to trend a bit better than outright positions, but there are no guarantees. Wishing you many more returns. Tim 2:59PM EST 10/6/2015
NYSE:DD
by timwest
4
Sell Short JetBlue (JBLU) compared to Buy Southwest (LUV)The ratio of LUV/JBLU is turning up after a long slide of 50% from 3.00 down to 1.50 where it is breaking a 5+ month downtrend in the past two days. If you look at the pure price chart overlay of the two stocks, they oscillate back and forth over time and looking back one year (in this chart) you can see that LUV is lagging a bit lately and JBLU is ahead of itself. I am looking at putting on both of these positions: Short JBLU to fall relative to LUV. And Long LUV to rally relative to JBLU. Risk 3% to make 10% over the next 10-15 days. Tim 1:48PM EST Friday, July 24, 2015
NASDAQ:JBLUShort
by timwest
3
Riding the bullish momentum of the USDCAD - daytrade/intradayThroughout this entire year, USDCAD has been rallying which can confirmed on the larger timeframes such as monthly, weekly and daily. I'm basing this trade based off of that momentum and on a simple trend-contination setup. As you can see, price has been consolidating this past week and along with all the momentum n volume today coming because of greece, Im expecting this to go higher with a target of around 1.2800 - around 80 pip profit
Long
by ppp7
WHY AUDUSD MIGHT BE A GOOD LONG-TERM SHORTALL CURRENCY PAIRS IN WHICH THE USD IS THE DENOMINATOR HAVE BEEN FOLLOWING A SIMILAR ARC SHAPE SINCE THE 2009 RECESSION. AS WE CAN SEE HERE, JPYUSD, CADUSD HAVE REACHED THEIR PREVIOUS SUPPORT AREAS. ONE CURRENCY PAIR THAT HASNT REACHED ITS PREVIOUS LOW IS THE AUDUSD. ALL MARKETS WORK TOGETHER, THEREFORE I BELIEVE THIS PAIR IS LAGGING COMPARED TO IS RELATIVES. AUDUSD COULD BE A GOOD POTENTIAL SHORT IN THE LONG RUN AFTER ITS CURRENT CONSOLIDATION.
by YungFinance
Market-Neutral Pairs TradeSo here we are, S&P 500 at 2,000, bears have good arguments and bulls have good arguments as well. As of right now, I have no idea where equities are going, I'll let the market tell me. But here is a quick trade idea I got today. By the way, please correct me if there is something wrong in my analysis as this is my first real market-neutral trade that does not involve options. US equities have outperformed World-ex. US equities for a few years now and I don't see how that trend is likely to stop. The US economy is finally blooming and it seems like things will go well, at least in the medium-term (but that's another story). So here is the trade: go long SPY and go short VEA. As for how to do this, I believe you would have to short 4.81 (ish) shares of VEA for every SPY you buy. If someone with more market-neutral trading knowledge could help, that would be great. Anyways, just a quick trade idea that exploits an easy trend to follow. Cheers
AMEX:SPY
by Fouezz
BP PLC - BP - Daily - Key Hidden Levels are Essential in BP!Look at the remarkable action around the KEY HIDDEN LEVELS in BP over the past 10 months - There have been multiple tests of the key support lines that provided ideal and low risk entries on pull-backs. Subscribe to "Key Hidden Levels" in the "Marketplace Add-Ons" section of "Indicators" . I'm looking to get long against support down here - I will post my entries here on Tradingview. Also, if you are short CVX against purchases in BP, you can create a "market neutral - pairs trade". See the link to CVX below. Tim
NYSE:BP
by timwest
9
Coca-Cola Company KO Daily - Lagging the SPY with low volatilityThere is a big divide here between the performance of the overall market and the performance of KO, Coca-Cola. The way to set up this trade is to go long KO and sell short an equivalent $-amount of SPY shares. Over time, I think that KO will start to outperform the market and this trade will make a profit. If they both go up, we need KO to do better than the market. If they both go down, again, we want to see KO do better and decline less than the market. The profit is in the difference between the performance and not the outright performance of KO. Tim KO 40.96+0.30 (+0.74%) SPY 194.46+0.16 (+0.08%)
NYSE:KOLong
by timwest
6
PAIRS TRADE: SELL SHORT KORS, GO LONG COHMichael Kors KORS - Daily (sell short) either outright, if you are unfamiliar with PAIRS TRADING. Or as a pairs trade, sell short KORS versus going long in Coach Inc COH (go long) Sell Short KORS 94.10 last -0.23 Buy Coach COH 40.50 last +0.51 I've been waiting for awhile to get a good technical setup on KORS as a short sale. The setup I wanted to find was a rally into a key resistance area. What we have here is just that. KORS is just under the level where earnings were released back on May 28th (note the chart shows 8th). The near perfect LINEARITY of the advance in KORS is spectacular, but I have to say that when you see a great, high quality brand like Coach COH down in the dumps while at the same time you see KORS overbought at very high valuation levels of 6 times sales, which is a level reserved for Biotech, High Tech, Drug Company's and other "high moat" investments, then I have to call this a LOW RISK trade.
KShort
by timwest
4