Pairs Trading Corner With Gas & Oil (MRO – RIG)…

(Marathon Oil – TransOcean, Ltd ) This pair looks hopeful for a possible long entry at the channel bottom, or about the spread value of $6.15. I will be looking to initiate one half-sized layer with the pair and then observe to see if we get further opportunity to add more layers. Let’s keep in mind that the pair has corporate events coming up soon on 2/20, for both stocks in the pair. Now, let’s take a closer look at the technicals aspects down below

Technically speaking, our pair has minimal correlation 0.75+, and the expected range of travel is about 0.80+/- above/below the 10 SMA. The RSI Wilder is weak with a value of 23.2, and will likely lower as the pair to our pending entry of $6.15+. I will have the pair set-up in the pending trades and will feature as “Pair Of The Day” in the next trading day’s edition of “ShadowTraderPro Pairs Trader” posted daily at “MyTrade”.. ; )

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