Reading Time: 2 Minutes
Pre-Market
Key Point(s)
Traders can make money by taking advantage of both RISING and FALLING prices.
Your LONGS are in the money by 2.89%
Your SHORTS are in the money by 8.7%.
Last week Thursday morning (18/04, pre-market) you may viewed my data set in which I highlighted shares that were trading at extended levels versus their 21-day exponential moving averages (EMAs). This isn't the only way to assess short term reward-to-risk however, it can be useful when the amount of overbought and oversold shares are above-average relative to other periods.
Below is the original data set, as published here: https://www.tradingview.com/x/uqAtK8kC/
Note: After publication, I removed the following names: Sasol-BEE and LHC (special dividend distorting the price distance vs 21-EMA). These were replaced with REM and FFB (the next best on the list).
Both the LONG (BUY) and SHORT (SELL) side had 10 shares each.
Out of the 10 shares to BUY or ADD, all 10 are in positive territory since publication.
Out of the 10 shares to SELL or REDUCE, 9 have moved in the desired direction i.e. DOWN. Only BAW continued to trade higher (do note: BAW is under cautionary which has supported buying activity the share price).
Since publication, the AVERAGE MOVE for the SELL/SHORT BASKET was -8.7%
Since publication, the AVERAGE MOVE for the BUY/LONG BASKET was +2.89%
The share price performance for the top 10 longs and shorts are shown below:
To trade, or open a new account, contact the Unum Capital Trading Desk:
E-Mail tradingdesk@unum.co.za | Call: 011 384 2923
Lester Davids
Analyst: Unum Capital
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