ShadowTraderPro Pairs Trader for December 22, 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: ALL - AFG
  • Sector: Insurance
  • Spread4.79
  • Ratio: 1.19
  • Correlation: 0.92
  • Spread range: 4.80 - 5.00


This one looks to be setting up right at the moment. We may hit this short today if it can open flat to higher. The range listed is appropriate for a short on ALL and a buy on AFG.

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.

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 OPEN POSITIONS - week of 12/21 - 12/25
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
NEM-RGLD long 107, 106 12/21 -0.54 n/a n/a 0.50 -2.00 open -0.54 0.00 0.00 $9,964
 Entered long after steep collapse below 10ma and subsequent intraday stabilization
 CLOSED POSITIONS week of 12/21 - 12/25
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
BRCM - SMH short 168, 200 12/17 4.80 12/21 4.34 n/a n/a closed n/a 0.46 $96 $10,706
 Covered somewhat ahead of mean for good gain.
LLTC - SMH short 182, 200 12/17 2.56 n/a 2.09 2.00 3.25 closed n/a 0.47 $100 $10,665
 Covered on pullback for gain at raised target.
NEM-RGLD short 104, 107 12/18 1.29 12/21 -0.12 n/a n/a closed n/a 1.41 $151 $9,990
 Moved strongly to other side of 10ma for cover.
  TOTALS: 213 open shares (open capital committed doesn't include closed trades) $9,964

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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