New trades today $EWG $EWD $CAR $URI $AMT $O$VIX inched higher to 29.2 and I expect it to hang around the 30 handle going into the election, no exits today, I put on 3 new pairs trades and plan on taking them off next week and most likely flattening my entire portfolio into cash going into election week.
Jared
Pairstrading
New Pairs Today - $LOW $TJX $AVB $IYR $DBX $BOXHey guys, we had a nice uptick in volatility today with the VIX climbing to 29.2, with that I put on 3 new pairs trades. Long $TJX / Short $LOW - Long $AVB / Short $IYR - Long $BOX / Short $DBX. I still have 3 other open pairs trades.
Barring any unexpected event I think volatility could stay tame up until the election in 2 weeks then we could see some massive re-pricing on the day of the election and the following several sessions as the market re-prices assets according to what new administration is set to takeover the White House, so I plan on having light exposure going into the election, not putting on any new trades in the several days leading into the election and then look for volatility spikes afterwards to enter new pairs trades.
Jared
New Pairs Trade - $CHRW vs $EXPDHey guys, final update for the week, I exited the pair $CGC vs $CRON and entered a new pairs trade long $CHRW vs short $EXPD, this pair has a profitable history and looks good technically right now. I ended the week up and expect market volatility to increase over the coming weeks into the election, I've left a lot of powder dry ready to take advantage of the spikes in volatility and enter new pair trades as they present themselves.
Have a great weekend and see you for trading on Monday!
Jared.
Today's Pairs Trade - Long $EPOL / Short $EWMHey guys, today I exited my shorts in $MSFT $FXI and $F and am now sticking just to pairs, I think market conditions will be good for staying market neutral especially coming into the election where we could see strong one way moves in the market making it very difficult for directional trades. On the other hand these highly volatile market spikes can present great opportunities for pairs trades.
I opened a new pairs trade today, long the Poland ETF $EPOL and short the Malaysia ETF $EWM in equal dollar amounts. Using the Buy Sell Bands on this pair has shown very strong historical results as I show in the video.
Stay tuned for my update tomorrow.
Cheers,
Jared.
New Pairs Trade - $KR vs $KHey guys,
Just a quick update on how my current trades are doing plus I put on a new pairs trade today; Long $KR / Short $K - Both are large cap food companies with a strong history of profitable pair trades using the Buy Sell Bands as I show in the backtest results.
Check in tomorrow for an update on how my trades are tracking.
Cheers,
Jared.
New Pairs Trade (Long PEP vs Short MNST)Hey traders, today I share a pairs trade I put on, going long $PEP and short $MNST in equal amounts betting on a reversion to the mean in the next couple of days and with a tight stop loss to limit the downside.
These are two similar stocks which make for a great pair and you can see on the Range Strength indicator the pair is currently trading in a strong range which is what we want to see before we take a signal from the Buy Sell Bands.
Stay tuned as i'll be updating this trade idea as it progresses.
Have a great weekend!
Jared
FOREX: Considering the exchange ratioThe last few days has brought home some important insights about of currency pairs. The pair is a ratio of demand of one currency over another.
I couldn't go into every aspect of this in the video in just 10 min.
Based on my observations (which are not rules):
1. All pairs quoted in US-Dollars are vulnerable, as the Dollar heads south around this time.
2. Pairs with a ratio of less than 1, quoted in US-Dollars eg. AUDUSD and NZDUSD are more vulnerable due to serious fluctuations of the US-Dollar.
3. Pairs with a ratio of >1 are less vulnerable to the US-Dollar.
4. USDCAD is problematic for anyone wishing to go long at this time because USD is heading south, price of oil is heading north (which tends to push CAD up). So the ratio is expected to come under bearish pressure around now.
5. Pairs based on EUR are under bearish pressure. But EURJPY is heading north around now because the Yen weakened largely due to recent stock market moves north.
6. Pairs quoted in Yen are likely to be pretty volatile as stockmarkets bounce around.
The above observations are bound to be correct, as they are just my broad observations limited to the last week and probably the next two weeks . I'm not interested in correlations.