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Positions update

January 27, 2014

The short position in Hess Corp (HES) v SPDR Energy (XLE) has a 2.9% profit as of Monday’s close. The position will be closed because Hess Corp reports earnings on Wednesday and I resolved to close these positions before earnings to reduce risk. I want to trade the set ups that I have identified, not the earnings announcements.

Hess Corp (HES) v SPDR Energy (XLE)

The last dashed line shows when the RSI and Performance Rank divergence were identified (in October). We may get more downside but that is not something that can be predicted through my method, which identifies the divergence set up.

Restaurants sector relative short position

This was entered on 17 December (dashed line) on a break of relative support. The trade has progressed well but became short term oversold. The stop loss is moved to break even.

Daily chart

RESTSPX 270114
I am looking for more downside on this. Recall that there has been a long term moving average crossover on this trade, so plenty of reversionary potential.

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