I should have followed up on this pair trade but felt it might be too risky due to the election results.
Having been out of the trade since my last post, I decided to reenter on the 11th of nov. at the closed based on the break of the 1.75 level as seen on the renko chart. I shorted 100 shares of ROCK and purchased 167 shares of X. On the 6th of Dec. at the...
I could truly write a book about this chart, but I will spare those who are only concerned about the next 5 minutes.
Suffice to say that this current bull run in pepsi stock as opposed to coke is quite long in the tooth( average is 41 months as per my notes) and is bumping up against the upper black trend line. If we get a reversal bar at this current trend line,...
I like a pair trade long x and short rock with the same dollar amount on both sides. A good entry would be
2.1 shares of x for every share of rock if you can catch the market when the prices are lined up that way.
just divide the price of rock by the price of x, and if you get anything close to 2.1, enter at the market.
as an example, you would short 100 shares...
