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

(Marathon Oil – Trans Ocean, Ltd ) Let’s see if we can grab a short on this pair, before Wednesday November 1st, as both stocks report earnings on that evening. If not, then we can wait and be prepared to trade on Thursday depending on where the pair will move. I like the tight spread value of $3.48 on this pair, and the fact that we can initiate a nice layer using only 1/4-sized trade set-up. Ok, how about a closer look at the technicals below..

Technically speaking, our gas/oil pair, has excellent correlation 0.94+, and the expected range of travel is about 0.50+/- above/below the 10 SMA. The RSI Wilder is mid-way with a value of 59.7, and should go to 90 to 95, as the pair moves toward channel top. I have the pair in 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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