Pairs Trading

Beta Weight or Dollar Weight your Pairs Trade?

So many times, I have folks that will ask me about when they should beta weight vs dollar weight their pairs trade. In order to best explain, we will use the pairs BP-MRO and BAC-RF for our example. Before deciding whether to beta weight or not, you first want to discern the approximate range of […]

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Pairs Trading

Pairs Trading & Waiting On Arrivals (DAL – UAL)

(Delta Airlines – United Airlines ) Now hear this! Arriving flights due any day now! LoL! Don’t you just love it, when you are stuck in an airport terminal, and you are forced to wait indefinitely for your flight! Well at least we have our handy TOS alerts that we can set with our pairs […]

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Pairs Trading

Pairs Trading & Long With Banks For Re-Entry (BAC – RF)

(Bank Of America – Regions Financial ) We went ahead and closed our pair as planned on Wednesday, before our lead stock “BAC” goes ex-dividend on Thursday. Now, I am excited to see if we get opportunity for a re-entry with the pair at channel bottom, or about the $11.00 spread value during Thursday’s (RTH) […]

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Pairs Trading

Pairs Trading With Banks Long For The Money (BAC – RF)

(Bank Of America – Regions Financial ) Well, I’m pleased with the secondary, short stock “RF”, performing so well in this long pair. Our current long entry for the pair is $11.04, and even though the pair pulled back on Tuesday down market, it is actually up $70 in the black, as you can see […]

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Pairs Trading

Pairs Trading Corner & Pushing Lemonade In The Hamptons (DAL-UAL)

(Delta Ailrines – United Airlines) Well, not all of us are spending the weekend in the Hamptons, but if we were travel there, we just might start with an airline ticket, purchased from Delta or United Airlines. Also not unlike our little entrepreneur pushing her lemonade stand, we might be doing some capitalist ventures ourselves […]

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Pairs Trading

Pairs Trading With With A Gem Of Energy (XEL – CMS)

(Xcel Energy – CMS Energy ) We are embracing the uncertainty and volatility in the market, with fantastic pairs like this old favourite “XEL-CMS”. As we discussed in Pairs Hour, yes the pair is in a slight down channel, but it works nicely within that channel, for long and short strategies. We currently in layer […]

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Pairs Trading

Pairs Trading & In The Holding Pattern For Take-Off (DAL – UAL)

(Delta Airlines – United Airlines ) Well, we are in the plane and seat backs are up, and belts are fastened, now we are just waiting for take-off clearance from the tower. Let’s see if we can get lift-out possible on Thursday’s (RTH) session, and look for cruising altitude of at least flight level 15.500. […]

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Pairs Trading

Pairs Trading & Looking Long With Banks (BAC – RF)

(Bank Of America – Regions Financial ) I am excited to see our banking pair coming back for another possible long entry around channel bottom, or about the $11.05+ spread value. With a little luck, we might just get our entry as early as Wednesday’s (RTH) session. Let’s kick off with a full-sized layer with […]

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Pairs Trading

Pairs Trading & Looking For The Gusher Exit (DO – RIG)

(Diamond Offshore – Trans Ocean ) With gas & oil on the hot seat, I would not be surprised to see our offshore drilling pair make a run to a possible target exit of $6.75 spread value or so. This will put the pair around mid-channel, and probably re-establishing our channel ranges as per our […]

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Pairs Trading

Pairs Trading Corner & Capturing Long Energy (XEL – CMS)

(Xcel Energy – CMS Energy) Well for those of you that follow Peter & Me, you know that we nearly got our long entry of a negative ($0.50) on Friday. I sent out a tweet that I had the ($0.50) price level set in the TOS Pairs Trader tab and ready to go. Of course […]

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Pairs Trading

Pairs Trading & Moving Ahead With Rails (ARII – TRN)

(American Rail Car – Trinity Industries ) Thank You to our ole’ friend and follower “halr” for bringing the train pair, to Thursday’s Pairs Hour Show!. As we can see from the chart, the pair has a gentle roll around the 10 SMA, and should offer both long and short entries in the near future. […]

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Pairs Trading

Pairs Trading & Headed For A Strategic Target (BP – MRO)

(British Petroleum – Marathon Oil) Well we don’t have a crystal ball, but we have the next best thing by utilizing the, “Put A Fibonnaci On It Adrian!”. I can’t tell you how many times I’ve laughed out loud when Brad & Peter get together and use their famous expressions like the above mentioned. As […]

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Pairs Trading

Pairs Trading & Waiting For Energy To Hit (XEL – CMS)

(Xcel Energy – CMS Energy) We came very close to our long entry near channel bottom, or about the negative 0.40- to 0.50- spread range. The pair made a low of about negative ($0.35) on Tuesday, and should be setting up nicely for a long entry hopefully on Wednesday. We can open the pair with […]

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Pairs Trading

Pairs Trading & Calculating Long With Energy (XEL – CMS)

(Xcel Energy – CMS Energy) I am exctied to see if we get a long entry for our old favourite pair, at/near channel bottom, or about the negative 0.40- to 0.50- spread range. The pair is out of the proverbial corporate woods, and should be setting up nicely for a long entry soon. We basically […]

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