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ZSL/JDST: Potential Long OpportunityZSL/JDST pair is signaling a Long position at the close of yesterday, supported by multi indicators, suggesting a promising opportunity. ADX : Indicates no trend at present, and a quick look at the daily chart confirms it. Correlation : remains very high in the last few weeks. Close price : closed below lower BB. Historical test : I would be happier with more historical opportunities in the last few months to test, but generally it seems okay.
AMEX:ZSLLong
by YoavShachak
Trade Recap: MEDP & LSCC - 24/4/24 to 25/4/24Market Context and Indicators (Closing of 23/4/24): Directional Movement Index (DMI): * DI+: 42.59 * DI-: 11.53 * ADX: 19.75 (indicating a weak trend) Stochastic Oscillator: * %K: 94.34 * %D: 98.11 (both in the overbought territory) Correlation: * MEDP & LSCC: 0.8852 (strong positive correlation) Trade Information: MEDP Position: * Position: Short * Entry Price: $415.00 * Exit Price: $406.00 * Duration: 24/4/24 morning to 25/4/24 mid-day LSCC Position: * Position: Long * Entry Price: $70.39 * Exit Price: $72.35 * Duration: 24/4/24 morning to 25/4/24 mid-day Analysis and Strategy: Given the strong positive correlation of 0.8852 between MEDP and LSCC, paired with the overbought levels of %K and %D on the Stochastic Oscillator, we identified a potential reversal opportunity. The ADX at 19.75 suggested a weak trend, which further supported the hypothesis of an imminent price correction. Trade Outcome: * MEDP: Achieved a successful short trade with a profit of $9.00 per share. * LSCC: Achieved a successful long trade with a profit of $1.96 per share. These trades exemplify the effectiveness of leveraging correlation and technical indicators to capitalize on market movements. Key Takeaways: Utilize Correlation: Understanding the correlation between assets can provide insights into potential price movements. Monitor Indicator Levels: Overbought and oversold conditions, combined with trend strength indicators, can highlight profitable trading opportunities. Adapt to Market Conditions: Weak trends, as indicated by ADX, often present good reversal trading opportunities. Stay tuned for more trading ideas and market insights!
NASDAQ:MEDP
by YoavShachak
Pair Trading Idea DUK/XELDUK and XEL have a 84,3% correlation over 60 market days. Applying some of the most popular indicators on the pair DUK/XEL shows an interesting pattern. While XEL has been clearly outperforming DUK since several weeks, a trend reversal seems to occur. DUK might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI . The setup is worth being given a shot: Short XEL, Long DUK . The strategy is market-neutral and is profitable when DUK starts to outperform XEL. Follow me to get regular pair trading ideas!
NYSE:DUK
by Optionopedia
Pair Trading Idea JPM/PRUApplying some of the most popular indicators on the pair JPM/PRU shows an interesting pattern. While PRU NYSE:PRU has been clearly outperforming JPM JPM since several weeks, a trend reversal seems to occur. JPM might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI. The price action confirmed the reversal in the last days. The setup is worth being given a shot: Short PRU, Long JPM. The strategy is market-neutral and is profitable when JPM starts to outperform PRU. Follow me to get regular pair trading ideas!
NYSE:JPM
by Optionopedia
Potential Trade Idea: Long Heating Oil/Short NatGasRecently our Unum Trading Desk analyst, Lester Davids identified a potential pairs trade on Heating Oil and Nat Gas. "I am bullish on NatGas with a medium term view. We recently saw a break of the downward trend with an inverse head and shoulder developing. In the short term though, we could see a pullback following the breakout. On that basis, one could be short NG and Long Heating Oil." We decided to wait for a better entry level on the medium term trade, rather than playing the ultra-short term reversal. It is now approaching our entry point. On the NG chart: "NG is approaching incline support around the $2.77 level. We also have horizontal support near $2.74. Potential buy/long opportunity. Keep on the watchlist for possible entry." For the pair we want to LONG NG and SHORT Heating Oil. If you want more details on the trade email tradingdesk@unum.co.za
NYMEX:NG1!
by MarkWeetman
SPY/QQQ - Feb.'18 Vertical Spread Pairs Trade (QQQ side)Trade details for QQQ: 159/149 Put Vertical Debit Spread @ $2.97 Prob. of Max Profit = 18.00% Prob. of Max Loss = 43.96% Break-even @ $156.03 52 D.T.E. Trade plan: QQQ identified to be overbought + sign of weakness compared to recent rally. SPY & QQQ are highly correlating, with QQQ as more volatile mover (suitable for debit spread). Feb. expiration has sufficient premium for credit spread + room for adjustment during trade if needed Built credit spread in SPY + Built debit spread in QQQ For QQQ debit spread: Expecting QQQ to breach $152 level by expiration. Expecting to possible adjust with naked put or put vertical spread if market rallies strongly to breach & stay above $160 level. Max risk reduced by 12% from SPY side of trade with market rally. Unlikely max profit of $703 if market plunges to $149 level. Check SPY side of pairs trade for more information.
NASDAQ:QQQShort
by AtoHoward