ShadowTraderPro Pairs Trader for August 19, 2009

The ShadowTraderPro Pairs Trader is a daily report which spotlights one equity pair which trades in a definable range and whose stocks are positively correlated. The objective of the newsletter is to present one such pair daily that may be coming into play currently, giving self-directed traders the opportunity to put the pair on watch for possible entry. Additionally, Pairs Trader sends out specific trade recommendations on selected equity pairs. These trades are managed actively via real-time email alerts and are tracked in the Pairs Trader Portfolio.

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If you have any questions or comments regarding commentary or plays in this newsletter, please email to pairstrader@shadowtrader.net.

Pair of the Day

  • Pair: LO - PM
  • Sector: Tobacco
  • Spread 27.12
  • Ratio: 1.60
  • Correlation: 0.89
  • Spread range: 24.80 - 28.30


Another gem of a pair here with a relatively flat 10ma daily. Note how the RSI2 in the bottom panel has been an excellent indicator of turns in the pair whenever it has moved up over 95 or below 5. A +95 reading may be right around the corner here as the pair approaches the 28+ level. Strong resistance for the spread has historically prevailed in this area. As the 10ma is has a slightly upward slope, buying the pair should be done on a touch of this trendline and not on support lows. 24.80 area to buy LO and short PM, and 28.30 area to short LO and buy PM.


Pairs Trader Portfolio

The matrix below shows all current ShadowTrader Pro Pairs Trader trades in the Portfolio. The Portfolio contains only those plays that are sent out in real-time via email. The Pair of the Day setup above is not actively managed or or tracked. Appearance of a pair in Pair of the Day does not guarantee that the pair will be in play in the Portfolio at any time. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Pairs Trader User's Guide

 OPEN POSITIONS - week of 08/17 - 08/21
pair dir sizes date
entered		 entry
spread		 date
closed		 exit
spread		 target stop status mark
to
market		 p&l
points		 p&l
capital		 capital
commit
EXC-VVC long 102, 215 08/18 25.96 n/a n/a 25.76 24.50 open 24.93 (0.03) ($6.77) $10019
 
 CLOSED POSITIONS week of 08/17 - 08/21
sym dir size date
entered		 entry
spread 		date
closed		 exit
spread		 target stop status mark
to
market		 p&l
points		 p&l
capital		 capital
commit
none $0.00
 
  TOTALS: open shares (open capital committed doesn't include closed trades) $0.00

Click here for year to date Pairs Trader Performance - 2009

All content © 2009 by ShadowTrader Technologies, LLC. All rights reserved.

Disclaimer and Waiver of Claims: Disclaimer and Waiver of Claims: The ShadowTraderPro Pairs Trader is a newsletter service, designed as supplemental material for the ShadowTraderPro Newsletter subscription service and it is not intended to be a stand alone newsletter. The risk of loss in the trading of any securities products can be substantial. The strategies mentioned here are active trading strategies, therefore you should carefully consider whether such trading is suitable for you in light of your personal investment objectives and financial resources. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. Past performance of any trades mentioned never guarantees future results.

Securities and options involve risk and are not suitable for all investors. See the characteristics and risks of standardized options.