Corn in the news.

A better way to trade the Corn commodity is to trade the relationship on two dates. Similar to a pairs trade.

Buy the Green when the vertical line is Green and be short the red. That is Long CH25 and short CU25.

Vice versa.

There is a much lower margin requirement.

 

New high quality breakout possibility.

Possible breakout of sound fundamental equity.

Possible breakout of high quality equity.

Trump Media (DJT) pre-opening. Thursday, January 16. 2024.

Strong financialsls with a rising price trend.

Breakout of strong balance sheet, income statement equity.

Pairs trading using trend following and not mean reversion.

Trend-Following Pairs Trading

Instead of betting on the convergence of two assets, trend-following pairs trading capitalizes on the divergence between them. This approach involves:

  1. Identifying two correlated assets that are beginning to diverge
  2. Going long on the outperforming asset and short on the underperforming one
  3. Riding the trend until it shows signs of reversal

This strategy assumes that the divergence will continue before potentially reverting.

Yesterday, Friday, January 3, 2024, I gave an example of AMD vs NVDA.
Today, Monday, January 6, 2024,  the continuing battle between all EV and partial EV, TSLA vs TM:

 

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Truth Social (DJT) 60 minute chart.

AAPL gaining on a Four Trillion Dollar market cap.

Weekly:

Monthly: