TA?? yum yum... arf arf good that you were able to make it back. yeah i understand your pairs strategy, as GE started to diverge from your other stock you started to buy GE and sell the other. and yeah unexpected news can seriously screw the strategy, so let's see if don spends less $$ on twinkies and leases a bloomberg box for you guys. i am surprised people are doing pairs "real time" I guess that's why it's not worth their while anymore for the big funds. but... whatever puts the cream on your capuccino it's ok i guess.
So are you saying that Don Bright was explaining the news hierarchy (which to me implied they had some kind of news service) but the offices really do not have real time news at all? I am not starting anything, just wanted clarification.
ok, well knock my pairs strategy if you want but it is consistent and yes- it does "put the cream on my cappucino"- making over a thousand a day consistently is fine by me....i'd be interested to know what you do, though and if it is profitable- i incorporate other strategies besides pair trading.....though i rely less on TA and more on tape reading and momentum plays.....whatever gets you green, man. and yeah, i bought GE at 26- an extra 1500 shares, shorted HON, (which didn't budge as sellers came in) and made a nice chunk of change back as the market rallied. (about time!!) yeah, ever hear of LTCM? they blew up getting away from arbing out bond prices (their forte) and moving into "pairs" arb. but as far as big funds not doing it, there are many hedge funds that do arbitrage of this nature, just longer term and more fundamentally involved.....
no I was not knocking your strategy, no need to get defensive man, what i meant is just that people like you are putting out of business the big funds, that's why "the boys" hate us no more big slow dumb money to front run. I have read and people have told me that pairs weren't working for them, well looks like the problem it's not with the strategy but with them, they are too "slow" and too dim-witted to adapt to changing markets. I trade anything electronic that "moves" and that is fairly and quickly executed. I use TA (not tits'n ass) exclusively for lack of a better term although I like to think about it as "statistical learning" but markets are very difficult to formalize and figure out completely, that's why just TA not something else that sounds "academic". I would call my style "systematically supported discretionary". good luck and hope you get that bloomberg terminal.
hey- i wasn't getting defensive at all- but yeah, pairs trading has been tough lately- i am just getting into it and am really starting to make some good money, but there are always a few pairs that can trend against you and cause some pain (FNM/FRE this month...) but all in all, it works well. yeah, i hope we can get bloomberg too! what do you use for your real time news?? good trading to you....
Check out BRCD and MU today (Thur). They were both upgraded to "outperform" today at 11:30, made a small hop up and then they both tanked. MU down 6%, BRCD down 17%!! Can anyone explain why a stocks value goes down when it is upgraded? Chart painting? My theory is that when the stocks were upgraded they were sold down to trigger stops in order for the sellers to then buy and accumulate at a lower price, or maybe it was a pump and dump?
a lot of times, firms will have a hidden agenda (they have a large position) in upgrading or downgrading stocks- and it is stupid that they can come out intraday and do so- another loophole for them....
NDQ and Buzzy....the pairs players are doing well, but yes, we have to keep a diversifed group (of pairs) so that the risk in one pair doesn't have a real negative effect on P&L. I don't think "Bloomberg" is the answer to the "news game"....(although they're good)...but anyone can get them through the internet if they like....I tried it, and didn't find it worth the $$. We all know that "price" precedes "news" and sometimes we will get "blindsided"....but most of the time the "tape will tell the tale" .... We could cut back the Oreo's a bit, however... Don
As for BRCD, the CFO apparently failed to give "guidance" at an investor conference yesterday because the company decided a few months ago that it wouldn't be giving guidance in the future. Probably a result of all the prosecutions and investigations going on? Anyway, the people at the conference were spooked/PO'd because of the change and it caused a selloff. The company has since received two upgrades, one "top five companies" recommendation, and one downgrade. It may be a bargain at the current price ($7.50) but who knows.