Hubble, Bubble, Toil and Trouble

This is a discussion on Hubble, Bubble, Toil and Trouble within the Indices forums, part of the Markets category; Dow has gone beserk this month compared to S&P and NASDAQ. Trying a pair trade. Short DOW @ 23455 Long ...

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Old Oct 25, 2017, 11:27am   #1
 
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Hubble, Bubble, Toil and Trouble

Dow has gone beserk this month compared to S&P and NASDAQ. Trying a pair trade.

Short DOW @ 23455
Long x 4 NASDAQ @ 6071
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Last edited by barjon; Oct 25, 2017 at 11:35am.
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Old Oct 25, 2017, 11:51am   #2
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Hoping they meet in the middle?
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Old Oct 25, 2017, 12:00pm   #3
 
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Hoping they meet in the middle?
Aye, DOW has been trading very strong against NASDAQ so looking for for them to revert to a more normal relationship by NASDAQ trading strong against DOW - doesn't matter if they are going up or down so long as NASDAQ rises more than DOW relatively if the UP continues, or falls less than DOW relatively if they go south.
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Old Oct 25, 2017, 12:11pm   #4
 
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Aye, DOW has been trading very strong against NASDAQ so looking for for them to revert to a more normal relationship by NASDAQ trading strong against DOW - doesn't matter if they are going up or down so long as NASDAQ rises more than DOW relatively if the UP continues, or falls less than DOW relatively if they go south.
So this raises the question of when to close the trade, what will you be looking for?
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Old Oct 25, 2017, 12:37pm   #5
 
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So this raises the question of when to close the trade, what will you be looking for?
Yes, there's no natural target to look for - either for gain or loss - so it's just a question of watching how it goes. I check it each hour.
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Old Oct 25, 2017, 12:46pm   #6
 
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barjon started this thread Currently NASDAQ 6068 = -3 @ £4 = - £12
DOW 23436 = + 19 @ £1 = + £19
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Old Oct 25, 2017, 3:25pm   #7
 
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barjon started this thread Currently: NASDAQ 6072 = +1 @ £4 = +£4
DOW 233390 = -65 @£1 = +65

NET+£69
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Old Oct 25, 2017, 8:26pm   #8
 
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barjon started this thread Just closed

Nas 6054, Dow 23334 for net £52 on the basis of £1 Dow, £4 nas.

Bit of a roller coaster while I was out at the circus with granddaughter (so much for checking every hour!). One of the troubles with this sort of trade is that you can’t set a trailing stop or anything like that because it’s the relationship between the two that counts and not the individual prices.
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Old Oct 25, 2017, 8:51pm   #9
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Originally Posted by barjon View Post
Dow has gone beserk this month compared to S&P and NASDAQ. Trying a pair trade.

Short DOW @ 23455
Long x 4 NASDAQ @ 6071
nice idea dude
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Old Oct 25, 2017, 9:09pm   #10
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Quote:
Originally Posted by barjon View Post
Dow has gone beserk this month compared to S&P and NASDAQ. Trying a pair trade.

Short DOW @ 23455
Long x 4 NASDAQ @ 6071
Dow has gone beserk this month compared to S&P and NASDAQ, despite Brexit.

Fixed that for ya.
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Old Oct 26, 2017, 11:31am   #11
 
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barjon started this thread Just to show the potential in this sort of trade.

A few minutes ago Nasdaq 6067 = -4@£4 = -£16
"..................... Dow 23357 = -98@£1 = +£98
...................... net = £82
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Old Oct 26, 2017, 11:39am   #12
 
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did you just take a trade without a stop jon!?
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Old Oct 26, 2017, 11:42am   #13
 
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did you just take a trade without a stop jon!?
No stop ? Back in the 1950s when I went to school that would have been a BM. Which is a beatable mistake. 6 thwacks with the cane on the backside. It really stung !!
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Old Oct 26, 2017, 12:03pm   #14
 
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No stop ? Back in the 1950s when I went to school that would have been a BM. Which is a beatable mistake. 6 thwacks with the cane on the backside. It really stung !!
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did you just take a trade without a stop jon!?
Sure did . You can’t have a stop because you are basically trading the difference between the 2 prices.
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Old Oct 27, 2017, 7:11pm   #15
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is this trade kickin ass today @barjon ?

Last edited by Kaeso; Oct 27, 2017 at 8:44pm.
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