timwest
Short

PAIRS TRADE: Short XLE, Go Long Crude Oil

AMEX:XLE   ENERGY SELECT SECTOR SPDR FUND
269 2 1
Widest spread in 5 years in XLE             versus Crude Oil             (Cl1!-front month)-

Use this wide spread to leg into positions and set your sights on a big reversion in this wide spread.

Tim

9/2/2014 2:40PM 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
ZaloRostam
2 years ago
What is your projected price for XLE ? Does this graph suggest that XLE and crude oil each should change their direction 25% toward each other? If this is right so I see XLE be around 73 and crude oil 116.5. Please let me know what do you think. Thanks
Reply
timwest PRO ZaloRostam
2 years ago
I project the price of XLE will move down MORE than Crude, to the tune of 25%. I think at least a 10% trade with a 5% risk parameter would make sense.

So, for a $100,000 account. Short $10,000 XLE, and go long $10,000 USO. This would risk $500 to make $1000.
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