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Kotak and Indusind Bank to SBI Ratio at 3.8 target 5Based on Fy25 numbers: # Kotak @ 1800 is trading at 2.3 time book value assuming 790/share in networth # Indusind bank @ 1300 is trading at 1.45 times book at assuming 900/share in networth. # SBI at 815 trading at 1.5 time book value assuming 540 / share networth. # Kotak + Indusind trading at average PBV of 1.85 times. # (Kotak+Indusind) / SBI is trading at 3.81 as on 21st Oct 2024. # The trade is to buy 6,50,000 worth of shares of Kotak and Indusind (50% each) and short 1 futures contract of SBI. The max down side is when both share start trading at 1.5 times combined PBV implying a downside of max 20% (1.85 to 1.5). This seems less likely. # Ideally the combined PBV of kotak and indusind should trade at 3+2 (2.5) times PBV while SBI should trade at 1.5 times (66.7% more). # since at 1.85 time combined PBV of Kotak and Indusind is trading at 23.5% premium to SBI, the trade can be closed when the gap reaches 60% premium which implies the Ratio reaches 5.
NSE:KOTAKBANKLong
by agrwal_amit
Potentially huge rally in $SEI brewingMy chart is a pair analysis, showing the ratio of SEIUSDT to TOTAL3 (multiplied by 10^15 to make scale visible). It shows that SEI is a "high beta", "momentum" coin relative to the rest of the market and trades very cleanly, respecting moving averages. I see a potential for SEI to outperform the market by as much as 500% over the coming weeks/months. Could mean anything between 10x and 100x in absolute terms, assuming the market rallies as well. The trigger would be a break of moving average to the upside.
Long
by adammska
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
Sigificant double breakout in ETH/BTC. Will likely outperform.Narrative is overly bearish ETH due to position in market cycle. ETH is a different asset compared to 2018 however, with substantially better supply dynamics than Bitcoin, increasing average returns for ETH over BTC. The charts reflect this. A signicant double breakout on the charts recently suggests ETH is starting to breakout of its downtrend against BTC which could signal more significant outperformance to come, particularly when the crypto market is less bearish. Long ETH/BTC.
Long
by UnknownUnicorn10152290
Confirmed breakout of LT channel in QQQ/SPY 🚀My previous thesis played out perfectly on this in 2022 (see profile). Now, we have sharply flipped after getting close to the bottom of the channel on this key pair trade. The beautiful breakout, with a confirmation pullback, suggests the outperformance of QQQ over SPY will continue and the breakout of the channel which occurred in 2020 is here to stay. Given this is a sharp breakout, it suggests a significant bull-run which catches everyone off-guard (like 1999) is also possible. As a long-term investor, QQQ is a better bet than SPY in my opinion.
NASDAQ:QQQLong
by UnknownUnicorn10152290
2
Etherium versus Bitcoin: Chart Edition. Bull or Bear?The beauty about crypto trading is: 1. 24/7 wordwide. You can trade on the worlds crypto exchanges from anywhere that's not authoritarian 2. The charts are beautiful 3. The crypto industry is getting legit. bad players are getting shown the exit. Don't hold fake "stablecoins" unless who know which gangster/bankster "backs" them. Hint: Pay VERY ATTENTION to UK Regulators and BAD crypto exchanges their harbor in the British Isles! Most important, TradingView provide wonderful perspective by comparing Key Pairs. The ETHBTC pair shows us Etherium is bulling compared to bull Bitcoin so, it's VERY Bullish. Can the markets change directions? Sure, but from this summer, most people could see that the tide is turning between these two "blue chip" cryptos. Crypto Allocation: Etherium 40% ETH (the DiFi blockchains and payment powerhouse with ETH2's low gas fee, high speed and payment focus) Bitcoin 40% BTC (The King of Crytp, battle tested, hard limit, no single head) Altcoins: "This can't be real but heck, let's join the profit parade LOL" 20% FOMO fever, bull cycle fun DOGE : Shitcoin, joke, meme, community supported SHIB: Purely a hype play, don't fall in love, eye the exit doors before other do! TROY: Long short shitcoin with great TROYBNB pattern charts to trade hard and sell hard. Wear gloves and don't trust hype coins... Troy could make a good "trading pairs - how to zoom in to pending moonshots comparing coins between each other"
by UnknownUnicorn2413721
Facebook (Peak Centralization) vs Bitcoin (Decentralization)Here's a trade idea that might be interesting. Although I may also be late to the game as both assets have moved considerably the last week or so. Maybe wait for a better set-up, but the idea is short Facebook and long Bitcoin. What the heck? Who would do that? What's interesting about this trade is peak centralization and peak decentralization are head to head. Facebook connected the world, which was great. But along the way they harvested and stored a lot of data. They serve ads based on interests and browser history. You get the idea - they are famous for their centralized data. Meanwhile, Bitcoin is essentially the complete opposite. It's moving away from centralization. The focus is to decentralize. Complete freedom and privacy to do what you want. The chart above shows the formula BTCUSD/FB. Another fun tidbit about this story: the Winklevoss are arguably the ones who started Facebook. Later on, as the story goes, Zuck stole the idea and ran with it. They've settled their differences in court. Nonetheless, it adds an even more interesting development to this idea because now the Winklevoss are some of the biggest Bitcoin hodlers. Almost 15 years later, they might be having the last laught. So there you have it. An epic pair trade. Long Bitcoin and Short Facebook. It needs a good nickname. Feel free to comment. By the way, I would not naked short Facebook in this trade. I would wait for a better entry and aim to buy some put options maybe 30 to 60 days out. Long Bitcoin. And then continue adding to the options position if it keeps hitting. Another thing to keep in mind is that Facebook has been a very strong name. It also has a ton of cash on its balance sheet. So it would take a lot to move it any lower. Slow down in user growth or ad growth could do that. Let's see. Thanks for reading
BITSTAMP:BTCUSD
by scheplick
3
Streamr(DATA)/BTC - 2-5x Profit Incoming?Hello guys, We have been following a downtrend for a few weeks, and if you look into 1W TimeFrame, you can clearly see a Falling Wedge Pattern! As we are just about reaching the bottom, and if you realize what Falling Wedge means, you understand that there's lot of profit to take pretty soon! So my prediction is that between 28th December-11th January, we will be seeing ATLEAST 2x increase. Pretty excited to see how much further we can go! Stay tuned guys!
Short
by TheMightyStark
1
Nasdaq vs S&P500: Ratio seems to have toppedFundamentals, technicals and sentiment aligned for a massive top in the ratio of US Tech Stocks vs the Broad Market here. Positioning and expectations of traders, hedge funds and everyone were shocked recently, with a massive rotation towards value stocks and commodities that caught everyone off guard. All the alpha collected during the year for Jim Simmons funds was erased in one day when the $PFE vaccine data came out. Now we keep getting more fundamental boosts to the notion that lockdowns are a thing of the past...or will be very soon. This puts pressure on inflation expectations here, due to unprecedented stimulus and currency debasing that we endured globally, so the pre existing trends that were born out of a deflationary phase are in danger of reversing dramatically. Tech/Growth stocks, a long time favorite of investors since 2009 might be at a peak vs Value stocks and commodities, Sovereign bonds are likely a huge short, with a massive debt bubble in all of the world, as interest rates are set to move higher from here onwards as a response to ballooning deficits and govt spending as a response to the pandemic emergency. Returning to normal will kickstart inflation that was delayed only by an artificial hibernation of economic output, but was already visible in certain goods, just not in energy yet. Energy stocks are largely mispriced, with fund managers love for renewable/solar/EV vehicles as the objective of the massive funds they divested from energy for a long time. I don't think $TSLA itself is a bad investment as it can continue to grow due to spectacular fundamentals, but the pace of growth in these investments will likely underperform the recovery in oil, airlines, energy, value names, etc. going forward. Vaccine stocks are likely to perform well for now, given strong technical signals in both $PFE and $MRNA, but I am not invested in them personally, although it would be interesting to monitor for opportunities. Refer to my Crude Oil publication below for more insights on the technical chart of oil. Cheers! Ivan Labrie.
CME_MINI:NQ1!Short
by IvanLabrie
5
my hedged trade on FacebookHi everyone, This is another trade taken today: Long Facebook vs Short JC DECAUX. Facebook has lost about 20% from its august top. Fundamentals are still strong (ROE, revenues, margin, cash flow), the management is strong as well. I choose to hedge it with JC DECAUX, traditional advertising industry, with weakening fundamentals (debt and cash flow are bad), Moody's outlook is negative, and the management is not that good (actually they are the heirs of the founder, compare with Facebook that is run by its founder...). This is implemented with barrier options maturing in 90 days. Comments are welcome!
NASDAQ:METALong
by fb_fabien
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