Saturday, October 17, 2009

Trade 153 + 154 = Pair Trade for Media

Pair Trade:

Long NWS 200@16.07
Short WAN 410@7.82

As the market gets closer to an inflection point, capital preservation is the key, and any trades that I make with leverage, will be of pair trade variety, until any solid new reversals are made in larger companies.

I am thinking NWS may have decent earnings, and will be thinking it may outperform WAN.

Pair trades are much less stressful than daytrades, and the margin for error is a lot larger.

I will hold this stock, until just before the NWS earnings release, or if the market moves in favour of the pair trade within 5 sessions.