timwest

PAIRS TRADE: BUY US STEEL (X), SELL SHORT GM (GM)

BATS:X   United States Steel Corporation
See chart:

Risk 10% overall. X is volatile. Upside potential is roughly 20%. 5-10% downside in GM and 10-15% upside in X.

I like this setup. You can see that the pair of stocks is volatile and there is a lead-lag relationship that shifts back and forth . Given how GM is leading higher, it gives me confidence that X will find a bottom here and hold.

Cheers.

Technical Tim, Saturday 6:13PM EST, Sep 22, 2012

Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.