Yes I know, GNTX has a mkt cap of 1.16B, I don't mind being long a small cap stock against a larger stock. Ive decided to re-organise my watchlists into industries instead of sectors, therefore ive included more small cap stocks on my radar.
Exited 2 trades on Friday; Sold JWN @ 14.55 Covered ANF @ 24.36 Sold DRQ @ 22.03 Covered OII @ 30.34 Opened 1 trade; Long MGG @ 14.70 Short TPP @ 21.32
money with all this journal talk. If you dont have this pair in your inventory, check it out. CFR and PRSP - both are strong high quality texas regional banks. On a simple term - when one moves 4 to 6 percent on the other, go against it. You can run all the other data and testing you want on it to get at a more statistical signal, but the end result will be a signal triggered about the same time. The only real divergence was in 2/08 due to an adjustment related to earnings. Both have great asset quality, but if one erodes relative to the other after earnings (npa/ta), be careful to see if the correleation fades. If not, its easy money over and over. Another great pair is knx/htld. To short-to-medium haul trucking stocks. Triggers seems to manifest near the dollars, but id wait for 6 to 10 percent moves to fade or begin ranging into it slowly.
Johnny, Can you go into some detail about the MGG pair? I have been eyeing this stock as a stand alone long but upstream MLP's make me nervous....thanks!
Hello These are my calcualtions of the performance of Jonnysharp. I just entered all the trades and when a trade closes, I calculate the return based on an absolute value and based on the time spent in the trade.