This is a pair trade idea based on CNQ/XLE pair cointegration. My calculations show that these two stocks diverged by more than 2 standard deviation and, based on mean reversion, should come back to mean. This pair's rolling mean is 28.3 over the last 280 trading sessions. The current value is 23.6 and one standard deviation is 1.8. The trad can be done by...
We have an interesting setup with only 3.65% downside, but with a potential 23.02% upside based on my 'Time at Mode' analysis of this ratio chart. Fundamentals for AMZN are good in the long term, it has been a relatively strong company, and has many interesting future developments ahead (like the introduction of drone delivery of goods, ocean freights from China,...
After seeing The Working Trader's idea I figured I could attemp a pair trade in this pair, to take advantage of the interest rate differential in both EURUSD short and AUDUSD long. The entry will be a market order, but I'd have to see how the markets open tomorrow, I will update the chart by then. For now, keep in mind that for pair trades, I aim to open a big...
EURCAD has one more week left to reach 1.47561. If it doesn't, it will most likely turn into a short with a 1 weekly ATR stop. 13 week CCI is showing bearish divergence, and we're close to 6.18 std deviations from the linear regression of the downtrend from high to low (figured it was an interesting value). Rgmov is stuck in a range, not putting out any new...
Analysis on chart, simple. We can go long on 50% retracement of today's bar from open to high. Stop at the open or at the mode below: 0.65762. Rgmov confirms the trade, it broke out of a long term downtrend trendline and bottomed ahead of price. Nice CCI divergence and higher momentum than previous peak, implying this rally is sharper than the declines...
Ladies and gentlemen, I recommend you the idea of the pair trade: 1. it is long position in the company OCIR (OCI Resources LP) and short position in the company RIO (Rio Tinto plc). 2. it is long position in the company OCIR (OCI Resources LP) and short position in the company ARLP (Alliance Resource Partners LP). Stocks of the company OCIR are stronger than...
Simple trade, trends are pretty clear here I believe. EURGBP is a strong downtrend and will resume its direction this week I believe. GBPUSD is an interesting long setup, with 11 weeks at one price and sitting above the mode currently. You can market buy now, but it'll be 100% confirmed once it reaches my entry level on chart (1.57084). Targets are for both time...
I like to go short, I find the best trades I take are shorts, not sure why, but it's true. Here we have 3 short opportunities, which are linked by correlations. The NZDCAD ratio chart, or exotic pair if you want to call it that is offering us a nice trend continuation opportunity. I will use this as a way to hedge my exposure to a more aggressive and more of a...