ShadowTraderPro Pairs Trader for August 20, 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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Pair of the Day

Pair: PRU - RGA
Sector: Insurance
Spread 3.83
Ratio: 1.09
Correlation: 0.97
Spread range: 1.50 - 5.00

Two insurance stocks with a tight range, almost completely flat 10ma as seen above. High correlation as well. Set alerts on this pair on moves lower towards $1.50 (buy PRU and short RGA) and on moves higher towards $5.00 (short PRU and buy RGA).

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

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
OPEN POSITIONS - week of 08/17 - 08/21
EXC-VVC	long	102, 215	08/18	25.96	n/a	n/a	26.74	24.50	open	25.55	(0.41)	($110)	$10019
	look to exit this pair possibly today if we don't see some rebound
LO-PM	short	68,109	08/19	27.63	n/a	n/a	26.65	29.00	open	27.37	0.26	$16	$9913
	shorted pair at higher end of trading range
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.