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Pairs Trading Long With Energy At Support (XEL – CMS)…

(Xcel Energy – CMS Energy ) As we can see from our chart, the pair is hovering around the negative ($0.90) spread value. I continue to hold my guns and looking for a negative ($1.20) spread value, which will put the pair right at the bottom of our channel. Let’s see if Thursday’s RTH will cooperate and bring our pair into our gun sights for a long shot. Ok, Thursday, Turn Up The Heat!

  • Pair: XEL – CMS
  • Sector: Energy Industry
  • Current Distance from mean: 0.20
  • Correlation: 0.98
  • Spread Range: 1.10- to 1.40-

161117xelcms

This Week’s Pairs Buzz! Wednesday, and keeping our powder dry, with pairs & bees, as we need a little more range expansion for better gains. Divergence continues and overrides normal (DM) range for our pair was from 15.0+/- to 25.0+/- above/below the 20 SMA now the pair is now 46.62- below the mean, and a direct result of of /TF Russell Futures being so volatile. Monday, the Airline pair “UAL-DAL” pushed through resistance and closed above for the day. We will pull the pair from pending trades for now.

“Bees & Pairs”, Utilizing the Underlying, Puts, Calls & Pollinating High Or Low With The Queen, as she makes the “Random Flight Of The Queen Bee”. Get a taste of “JaxsOpts(TM)” Multiple Legs Of Equiities Options, I.E. (SPY-IWM, IWM-QQQ, IWM-DIA) all of which bring new trading environments for safety and enjoyment. The “JaxsOpts(TM) trade strategy starts with buying long an anchor option pair, then shorting a second complimentary option pair with a common thread of a lead stock. This is more exciting action, and we have added it to our Bonus Excel Sheet, along with the “QueenBee(TM),”HoneyBee(TM)” & “Bumble Bee(TM)”, all of which are great for discussion and evaluation for our Thursday Pairs Trading Hour Show!

“QueeBee(TM)”Capital Commitment /ES Futures Margin Requirement $4950.(Pending QueenBee(TM)trades quoted as *CPP* Credit Price Position) The November 18TH, FRIDAY “MONTHLY” Short Call option is (./EW3X6C2195), The November Monthly Long Put option is (./EW3X6P2110). The /ES Underlying, may or may not, be entered into long, or short, at the discretion of each individual trader for additional profit potential with more Pairs Trading Set-ups.

“HoneyBee(TM)” Ishares Russel 2000 ETF & SPX 500 “MONTHLY” Call IWM – SPX November 18,$2220C Welcome to our “HoneyBee(TM) Trade strategy. We start with selling regular size short *(12 to 25)* for mid-range instruments, and then buy 1 call, with about a (5 to 10) Delta in order to always protect our short IWM shares. Another Pairs Trading Set-up.

TOS, has us back in business with importing our pairs from our Bonus Excel Sheet & Now We’ve Added More New Features To Trade Our Pairs Using Both The Spread Value & The (PPL) Position Price Level

“Futures Pairs” /ES-/TF Wednesday 16th, at (6.56 pm) & our pair is about 46.62- below the mean for our (S&P 500 – Russell) Mini Futures Contracts. “Expected previous consolidations were” 15.0+ to 25.0+ above & 15.0- to 25.0- below, the 20 Day (DM) Distance-from-the-mean, and “will be re-evaluated”. The present 20 SMA is at 917.40. These trades are self directed trades strictly managed by you the individual trader, and “Ninja Pair Trades” are not tracked in our “Pairs Trading Portfolio”…

For any questions, comments, new ideas, or to request your pairs trading starter kit, please email Tom “The Southern Gentleman” Cook at pairstrader@shadowtrader.net.

Thursday & Looking Forward To Seeing Everyone At The Pairs Trading Hour Show!

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The commentary above is excerpted from the ShadowTrader Pro Pairs Trader newsletter. The newsletter is a stock only service designed for active equity traders who are interested in pairs trading of equities long and short simultaneously so as to profit from divergences while maintaining a market neutral bias.

The daily report spotlights one equity pair which trades in a definable range and whole stocks are positively correlated. The objective of the newsletter is to present one such pair daily that may be coming into play currently, giving self-directed traders the opportunity to put the pair on watch for possible entry. Additionally, Pairs Trader sends out specific trade recommendations intraday on selected equity pairs. These trades are actively managed via real-time text alerts and are tracked in the Pairs Trader Portfolio.

Specific pairs trade recommendations are posted to MyTrade as we find them. The ideas are always presented as a matched equity pair, alerting subscribers to purchase one stock while simultaneously shorting another, often within the same sector or industry group. Trade alerts clearly explain the analysis behind the setups and also educate newer traders on basic pairs trading concepts such as spread, ratio, correlation, beta/market neutrality, and more. These trades are added to the ShadowTrader Pairs Trader Portfolio which is updated nightly and included in each day’s edition of the Pairs Trader newsletter. The newsletter is sent out each night assuring that users have ample time in the morning to digest the information.<


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