2008 mid summer flag vs. 2012.....
Similar pattern but much stronger trend this year.
Similar pattern but much stronger trend this year.
Charts of Note
- Thread starter darkhorse
- Start date
Will China put this rally to bed? (FXI)
http://www.elitetrader.com/vb/showthread.php?s=&postid=3594922#post3594922
Sorry....broken links last two posts. I asked administrator to remove them, and may have been removed by the time you see this post.
HOT HST 1-month chart ending yesterday, Friday, Aug 10
Compare it to 9 days day ago, start of trade (next post)
Indeed, much, much more to milk from this one.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3596402>
Here is the HOT HST 9 days ago (Aug 1), found on p. 40.
(...and actually the spread narrowed from then 8 1/2% (not 8% as I earlier indicated) to 4% nine days later (Aug 10) ! )
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3596429>
Please look at my posts on page 39 with longer dated charts. This is one heck of a safe trade.
When looking at the Aug 10 position (just a few posts ago) you can see it has VERY MUCH MORE additional, convergence potential.
(...and actually the spread narrowed from then 8 1/2% (not 8% as I earlier indicated) to 4% nine days later (Aug 10) ! )
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3596429>
Please look at my posts on page 39 with longer dated charts. This is one heck of a safe trade.
When looking at the Aug 10 position (just a few posts ago) you can see it has VERY MUCH MORE additional, convergence potential.
The significance ? Well, on a few Aug 1 posts, I was pointing out that for a pairs swing trader like myself, this was an incredible opportunity to Short HOT and go Long HST. Look particularly at the 1 month chart. I have been doing this style of trading for a few years, and this is is the best potential I have seen in this style of trading.
On Aug 1, I posted the longer term charts, too. What I was pointing out then was the incredible safety of this trade. The 1-month chart showed the enormous stretching of the rubber band.
Heck.... Look at the 20 year chart ending Aug 1, 2012. There is only one time the spread got as much as the Aug 1, 2012 spread. That was April 1 this year, and it reverted back to HST in May and in June especially.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3596445>
hmm i understand.. so as i figured its a correlation trade... how are the options priced? is there a trade in options that would make better sense then in the underlying? just curious.. i've never done any statistical correlation or dispersion trading..... i kind of figured you were talking about something like that.. thats why i asked..