PAIRS TRADE - BUY OIL, SHORT XLE
Perhaps a rush to own dividend paying XLE shares and the run-up in crude oil prices post-election has pushed the XLE to a dramatic, climactic peak, but now it looks vulnerable to a fall.
OIL is an ETN (exch traded note) and XLE is an ETF (fund of stocks in the energy sector). Do you due diligence on these prior to establishing your positions.
I like how these two trade together and I like the sizable disparity lately. I have pointed out this pair before, but didn't give specific trading parameters.
This time I believe risking 5% to make 5% to 8% is the right trade for the next 5-15 days.
Cheers.
Tim 11:40PM EST Monday, Feb 10, 2013
OIL is an ETN (exch traded note) and XLE is an ETF (fund of stocks in the energy sector). Do you due diligence on these prior to establishing your positions.
I like how these two trade together and I like the sizable disparity lately. I have pointed out this pair before, but didn't give specific trading parameters.
This time I believe risking 5% to make 5% to 8% is the right trade for the next 5-15 days.
Cheers.
Tim 11:40PM EST Monday, Feb 10, 2013
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.