timwest

PAIRS TRADE - Buy WMT, Short SPY

BATS:WMT   WAL-MART STORES INC
402 9 2
Here is just another way to look at how nicely WMT             is positioned versus the overall market. The recent wave of news pushed WMT             down to a decent level and the recent linear-rally in the overall market (perhaps dragged up by technology and oil             shares) has a reasonable profit-potential sitting on the table.

Upside: 5% in the next two weeks.
Risk: 5%.

By: Technical Tim, March 5, 2012 3:52PM EST
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Algokid PRO
4 years ago
Good one Tim, Got in that trade a little bit early on Feb 22. Just curious , how do you find your pairs ? I use standard deviation, correlation in an excel sheet
Reply
timwest PRO Algokid
4 years ago
I read news stories, articles and watch price action. My brain just stores all of the combinations that I track. TradingView lets you see how something is acting relative to something else. I also plot ratios at stockcharts.com by separating the symbols with a ":" and no spaces. It is a great way to look at ratios. Typically, I keep in mind what stocks are moving on news, then remember to check out where they are about 3-5 days later. How many pairs do you monitor?
Reply
Algokid PRO timwest
4 years ago
Yeah, that stockchart.com tip that you gave has helped me a lot with the pair trading, thank for sharing that again. Right now have 6 pairs open, most of them in natural gas. Everything was going ok until natural gas started a descent back in early January. The spread between the stocks became too big ( 20 % + ) so i had to take some losses . I'm now revising my pairs and try to diversify them in different sectors, hence why i haven't posted any new pair trade lately.
Reply
admin PRO timwest
4 years ago
We are adding this to TradingView now. Please do not forget to vote here:
https://getsatisfaction.com/tradingview/topics/ratio_and_spread_feature_for_pair_trading_purposes
Reply
timwest PRO
4 years ago
At the close of March 5th, SPY was 136.77 and now it is 140.35 for a gain of 2.62%. WMT was 59.37 and now it is 61.02 for a gain of 2.78%. Not much return for this trade so far. Tim, Friday 2:35PM EST March 16, 2012
Reply
timwest PRO
4 years ago
This trade has worked tremendously on a longer term basis.
Reply
MyPriorSelf
4 years ago
Great call, thanks Technical Tim
Reply
timwest PRO MyPriorSelf
4 years ago
Thanks gnomishmath :-) It is great to trade in a way that cuts down on the "market risk". I have pointed out GE versus the market also, in case you are looking for other super-cap pairs. Cheers.
Reply
charttrader PRO MyPriorSelf
4 years ago
Agree, well done Tim.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out