PAIRS TRADE - BUY OIL SERVICES ETF OIH - SELL SPY
The spread between the performance of OIH and SPY has been extreme for a couple of years now. OIH has gone nowhere now for 8 years, since 2006 and the SPY is up 48%.
The catalyst for this trade to unwind is simply the movement of funds away from the big-cap S&P500 stocks that have been lately making us all wonder how the market is staying up despite the big hits to technology and internet-related names. The generals are leading the army as the IWM Russell 2000 index is far from its highs. I think this is a time when it makes sense to be long the basic industries and short the overall index.
Keep in mind though, that I have a weekly buy signal on the SPY with a 184 stop. Pairs trading these positions in a portfolio would mean letting go of the SPY long position or cutting it down in size.
Risk tolerance - roughly 5% - potential return roughly 20% over 3-6 months.
The catalyst for this trade to unwind is simply the movement of funds away from the big-cap S&P500 stocks that have been lately making us all wonder how the market is staying up despite the big hits to technology and internet-related names. The generals are leading the army as the IWM Russell 2000 index is far from its highs. I think this is a time when it makes sense to be long the basic industries and short the overall index.
Keep in mind though, that I have a weekly buy signal on the SPY with a 184 stop. Pairs trading these positions in a portfolio would mean letting go of the SPY long position or cutting it down in size.
Risk tolerance - roughly 5% - potential return roughly 20% over 3-6 months.
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
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
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
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.