Archive for July, 2011

  • Watching Skechers After the Close
    Posted by on July 27th, 2011 at 12:22 pm, Comments: 0

    We have been watching $SKX for a little while and recently decided to take a small trading position.  Just a little over a year ago, [...]

  • $GLD – $GDX Not Too Late to Short
    Posted by on July 26th, 2011 at 1:21 pm, Comments: 0

    Okay we are going to talk our book this week. The $GLD-$GDX (Gold Miners ETF – Gold ETF) spread, which we sold on July 7th, [...]

  • Thoughts on Bracket Asymmetry
    Posted by on July 22nd, 2011 at 2:09 pm, Comments: 0

    bracket asymmetry does not change the expected reward of a trade, it only changes the frequency of your wins & losses. In a random process [...]

  • Cockroach Theory Applied to SuperValu (Update)
    Posted by on July 21st, 2011 at 12:59 pm, Comments: 0

    Supervalu ($SVU) is a company that we have been following since its most recent earnings release on April 14.  The stock has performed poorly in [...]

  • Get a Half-Life
    Posted by on July 19th, 2011 at 1:20 pm, Comments: 0

    What is the half-life of a spread and how do you use it in practice?  For a mean-reverting spread, half-life is the time it takes [...]

  • About Stocks Cointegration
    Posted by on July 12th, 2011 at 2:40 pm, Comments: 0

    Cointegration is a confidence level that when two securities (long and short) deviate in valuation, they will revert to the mean.  Here’s a more technical [...]

  • Trading Turnaround News with a Spread
    Posted by on July 11th, 2011 at 12:28 pm, Comments: 0

    On July 6, disk drive component maker Hutchinson Technology ($HTCH) pre-announced stellar results for the quarter ended June 30.  Shares were up almost 20% in [...]

  • Gold Spread Redux
    Posted by on July 8th, 2011 at 1:56 pm, Comments: 0

    Yesterday we sold the $GLD -$GDX spread.  We had shorted this spread back in March.  Over the next few months the spread continued to move [...]

  • American Apparel Update
    Posted by on July 7th, 2011 at 11:12 am, Comments: 0

    We are analyzing a special situation with American Apparel ($APP).  As background, $APP secured rescue capital from Michael Serruya and Delavaco Capital on April 26 [...]

  • The Market Gets This One Right
    Posted by on July 5th, 2011 at 12:18 pm, Comments: 0

    On June 28th, Accenture Plc ($ACN) climbed 3.2 percent to $59.65, the highest price since it went public in July 2001 on the announcement that [...]