ShadowTraderPro Pairs Trader for August 24, 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 - MET
  • Sector: Insurance
  • Spread 11.01
  • Ratio: 1.28
  • Correlation: 0.97
  • Spread range: 9.40 - 11.50


Two insurance stocks for today's pair. 10ma has flattened out nicely now. Note how their individual daily charts are lockstep with the big move on Friday in PRU mirrored exactly in MET. These are the types of patterns that are excellent for pairs. Look to buy PRU and short MET when the spread approaches the $9.40 area and short PRU and buy MET when the spread approaches the $11.50 area.

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 26.74 24.50 open 27.08 (0.28) $15 $10019
 excellent reversal off of trendline support today, looking to exit on a push
 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
LO-PM short 68, 109 08/19 27.63 08/21 26.75 n/a n/a closed n/a $0.88 $107 n/a
 Closed at target on retracement back to center of range
  TOTALS: 317 open shares (open capital committed doesn't include closed trades) $10,019.00

Click here for year to date Pairs Trader Performance - 2009

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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.

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