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ASX Stock Pairs Trade Journal

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TEN has come back a bit today, first day in a while it hasn't been in the green!

Just got an entry into Long NWS and Short SGN.

Also looking at shorting HZN but will be patient and careful with this one, tossing up long AUT, KAR or BPT.
 
VSntchr said:
TEN has come back a bit today, first day in a while it hasn't been in the green!

Just got an entry into Long NWS and Short SGN.

Also looking at shorting HZN but will be patient and careful with this one, tossing up long AUT, KAR or BPT.
Click to expand...

Yes I saw a few signals related NWS as well, but I would avoid NWS temporarily as it is getting sold off due to the potential/upcoming ASX exchange delisting. I've taken CWN/ALL and ANN/SHL today.
 
VSntchr said:
TEN has come back a bit today, first day in a while it hasn't been in the green!

Just got an entry into Long NWS and Short SGN.

Also looking at shorting HZN but will be patient and careful with this one, tossing up long AUT, KAR or BPT.
Click to expand...

I was in the queue at 32 to exit TEN and but didn't get a fill (I was may be 30k shares away), but I am not too concerned. With the down move today 31 is a real possibility over the next day or 2. Let's hope my FXJ long holds up in the meantime.

SGN got a bit of write up today by Macquarie who raised the price target by a bit, so I won't be surprised if it heads back above 160+ given how thin it is.

With HZN possible look to pair it with oilers of comparable sizes... AWE, DLS, SXY etc. I find KAR tricky as it likes to release drilling updates with regularity (which makes it hard to keep up with), while AUT recently released a disappointing update and I think the recent weakness is probably a result of that.

Having said all that, sometimes these bits of information mean nothing except make you procrastinate and miss an otherwise good valid trade.
 
skc said:
I was in the queue at 32 to exit TEN and but didn't get a fill (I was may be 30k shares away), but I am not too concerned. With the down move today 31 is a real possibility over the next day or 2. Let's hope my FXJ long holds up in the meantime.
Click to expand...

Well how's that for precision trading... sold FXJ @ 64.5 and covered TEN @ 31 for a tidy 9% convergence.
 
skc said:
I was in the queue at 32 to exit TEN and but didn't get a fill (I was may be 30k shares away), but I am not too concerned. With the down move today 31 is a real possibility over the next day or 2. Let's hope my FXJ long holds up in the meantime.
Click to expand...
Happy days for us :)

SGN got a bit of write up today by Macquarie who raised the price target by a bit, so I won't be surprised if it heads back above 160+ given how thin it is.
Click to expand...
Thanks for the tip.

With HZN possible look to pair it with oilers of comparable sizes... AWE, DLS, SXY etc. I find KAR tricky as it likes to release drilling updates with regularity (which makes it hard to keep up with), while AUT recently released a disappointing update and I think the recent weakness is probably a result of that.

Having said all that, sometimes these bits of information mean nothing except make you procrastinate and miss an otherwise good valid trade.
Click to expand...
Again, thanks. I'm still learning soo much with each week and haven't quite optimised which stocks should go together, I have been including size as a parameter but have not been too tight on the criterion so far..

You make a good point about some stocks (KAR in your example) releasing infomation/updates more regularly than others. Some stocks are very friendly and only release 3 or 4 price sensitive ann's a year :D
 
VSntchr said:
Again, thanks. I'm still learning soo much with each week and haven't quite optimised which stocks should go together, I have been including size as a parameter but have not been too tight on the criterion so far..
Click to expand...

You can't always optimise everything and you need to be dynamic and nimble based on new information that comes to light, as well as understand the overall context of the market and the sector. The longer you trade the better you get on how to pre-empt the market reaction to these information.
 
VSntchr said:
Big spike on GWA today..

Also BLD is triggering against not only GWA but a few other material stocks...
Click to expand...

CIMB upgraded GWA today. The move seems a bit over the top however.

I have been trading like an idiot recently...:banghead:
 
Picked long CRZ/short IRE at market close, and left RHC/NHF due to lack of capital (in the middle of moving funds between brokers), hope I get to pick it up again tomorrow.
 
And while still on the topic of analyst upgrade/downgrade, how do you guys view them generally? As a major news event that exits (or filters if you are already in) your trade? Or as an opportunity as the "fundamentals" have not changed as a result of it?

So far I tend to see them as the latter, especially if I'm not already in the trade. And if I'm unfortunate enough to be in it when the upgrade/downgrade happens, then it's a matter of "if it hurts enough, get out"
 
SilverRanger said:
And while still on the topic of analyst upgrade/downgrade, how do you guys view them generally? As a major news event that exits (or filters if you are already in) your trade? Or as an opportunity as the "fundamentals" have not changed as a result of it?

So far I tend to see them as the latter, especially if I'm not already in the trade. And if I'm unfortunate enough to be in it when the upgrade/downgrade happens, then it's a matter of "if it hurts enough, get out"
Click to expand...

Bit of everything really... if I am holding and the upgrade/downgrade is against me, sometimes I cop it, while other times I step aside on that leg and look to re-enter at better spread. If I wasn't holding, I'd look to both trade in the direction of the recommendation change, as well as fade it if it looks to run out of steam.
 
skc said:
Bit of everything really... if I am holding and the upgrade/downgrade is against me, sometimes I cop it, while other times I step aside on that leg and look to re-enter at better spread. If I wasn't holding, I'd look to both trade in the direction of the recommendation change, as well as fade it if it looks to run out of steam.
Click to expand...

Were you in the GWA trade? How did you handle that one?
 
SilverRanger said:
And while still on the topic of analyst upgrade/downgrade, how do you guys view them generally? As a major news event that exits (or filters if you are already in) your trade? Or as an opportunity as the "fundamentals" have not changed as a result of it?
"
Click to expand...

I think it depends on what the stock is for me. If I am already weary about shorting a stock due to me perceiving it as a strong stock and then an upgrade comes out, I'd probably get out.

If I am not already in, I assess the reaction and act based on that. As for GWA yesterday I felt that 7% rise with no new info (other than a broker thinking its worth more) was a bit overcooked..so I got in. I was actually sitting in the queue for BLD and didnt get a fill so managed to close the GWA position for a profit on the close.

So my answer is really that I don't have a solid procedure for dealing with upgrades/downgrades and assess it on a case by case basis, which hopefully, I will improve at over time.
 
SilverRanger said:
Picked long CRZ/short IRE at market close, and left RHC/NHF due to lack of capital (in the middle of moving funds between brokers), hope I get to pick it up again tomorrow.
Click to expand...

The CRZ/IRE is interesting, its not as fundamentally correlated as I would hope for most of my pairs - however this is just how I have tried to tailor my approach. Do you base your pairs more on backtest results/statistical correlation?

I was watching the NHF/RHC trade too...hopefully it stays on until I also have funds ready!
 
SilverRanger said:
Were you in the GWA trade? How did you handle that one?
Click to expand...

VSntchr said:
I think it depends on what the stock is for me. If I am already weary about shorting a stock due to me perceiving it as a strong stock and then an upgrade comes out, I'd probably get out.

If I am not already in, I assess the reaction and act based on that. As for GWA yesterday I felt that 7% rise with no new info (other than a broker thinking its worth more) was a bit overcooked..so I got in. I was actually sitting in the queue for BLD and didnt get a fill so managed to close the GWA position for a profit on the close.
Click to expand...

With GWA I shorted it towards the close as well. It's still reasonably strong today. I've paired that with BLD so it's a bit against me for now.

I was short CSR some days ago when it got an upgrade. I didn't close the trade and I am still paying for it now.

VSntchr said:
So my answer is really that I don't have a solid procedure for dealing with upgrades/downgrades and assess it on a case by case basis, which hopefully, I will improve at over time.
Click to expand...

Overall I see them as more opportunities than risks, and there probably isn't a one size fit all response.
 
VSntchr said:
The CRZ/IRE is interesting, its not as fundamentally correlated as I would hope for most of my pairs - however this is just how I have tried to tailor my approach. Do you base your pairs more on backtest results/statistical correlation?

I was watching the NHF/RHC trade too...hopefully it stays on until I also have funds ready!
Click to expand...

Missed my NHF/RHC entry this morning, got distracted by the BTT surge that I wanted to fade.

CRZ is on my media list as well as the IT list, but generally I like it more with SEK, FXJ, REA. But yesterday I got a stronger signal with IRE so that made my trade. Hope that was the right choice :)
 

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