Charts of Note

Quote from ammo:

eur 15 yr
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I'd guess its going to fall out the end of that triangle if you were to ask me.. i think the Euro Crisis is gonna put it back at a dollar.. you have a macro view on Europe?
 
Quote from ammo:

eur 15 yr
More...

two long term time frames there you posted that both look bearish.. and everyone knows that Euro zone isn't poised for a upside breakout haha
 
0822eur-jpy.png


Mr. Market jizzed his pants on the dovish Fed minutes. It's a dumb reaction though.

via http://www.mercenarytrader.com/2012/08/knee-jerk-fed-reaction-doesnt-add-up/
 
Quote from deucy28:

Perfect PAIRS TRADE for spread, reversion to the mean.
See this 1 - Year and the next posts for 6 months and 3 months.
The shorter term months look great, too.
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In three years of pairs trading, this is one of the greatest charts of note as I posted on Aug 1. Notable was the exceptional high probability of a gain and high probability for an excellent gain.

I halved the position some days ago booking a gain at that time that would ordinarily be a normal gain for a full position being closed.

At market close today the position is at its biggest gain since inception of trade Aug 1. Looking at the next post, a 3-month chart, observe the potential for additional gain.

This has the potential for the Hall of Fame for a pairs trade of a single level (as opposed to piling on with additional levels, typical when a position goes negative for a trader, and the potential gain evolves bigger.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3606879>
 

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Look at HST's inferior postition the last month compared to its superior position the first two months. It has lots of room today to recover at least some of its superior position

The pair closed the session today with its widest spread for a gain since its Aug 1 inception of the trade.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3606890>
 

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hey man i did some reasearch i wanted to share with you concerning using synthetics instead of the underlying.. crazy better leverage.. tie up way less money..

UL vs. Synthetic... margin requirements

Short Put

Position
Short 1 Sep 160 puts(s) at $2.56
Underlying stock at $160.
Put is out-of-the-money

Initial Margin
Margin requirement: $3,412.80
Proceeds from sale of short put(s): $256.00
Margin call (SMA debit): $3,156.80

+
Long Call – 9 months or less until expiration

Position
Long 1 Sep 160 call(s) at $3.15

Initial Margin
Margin requirement: $315.00
Margin call (SMA debit): $315.00

Synthetic Margin Requirement on 100 shares..
$3,156.80 + $315.00 = 3471.80

Margin Requirement on 100 shares of the UL @ 160.84
Margin requirement on stock purchase: $8,042.00
this is REG-T margin

It costs $4,570.20 or 2.3 times more to trade directly in the underlying..

this is the margin calculator i used..
http://www.cboe.com/tradtool/mCalc/default.aspx
 
Tran-chart-2012-08-24.png


The breakout in transports is starting to look like a headfake...

If the index rolls over, consider truckers as possible short candidates: JBHT, SWFT, CNW, WERN...

Pick the candidates carefully - a lot of truckers have shortable charts but very light trading volume.
 
What is a margin calculator, caveman ?

(We should take your premise to another thread more appropriate for it than this one on Charts of Note ! ! )

(Try TA forum / Spread trading thread. or Journals forum / Pair Trading Strategy )

I will join you there. It kind of mucks things up in darkHorse's thread here.
 
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