Trading Pairs: Apple And RIMM

A little over six weeks ago Adam Hewison produced a video on the relationship between Apple and RIMM.

He called it the “Battle Of The Tech Titans,” and in that short video he explained that he felt the relationship was changing between Apple, Inc. (NASDAQ_AAPL) and Research In Motion, Ldt (NASDAQ_RIMM). He detailed a strategy of approaching this market using a trading strategy that he calls “pair trading” or “trading pairs.”

What trading pairs means is that you buy one market while going short the other market in the same sector. Now Apple and RIMM are battling it out right now in the smart phone sector. It remains to be seen who is going to be triumphant in this battle but it would appear as though Apple may have the upper hand based on its very successful “APP” store.

I strongly suggests you watch his earlier video on this subject; and then watch his latest video which he just produced.

Trading pairs is what many professionals do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. I hope you find the video both informative and educational.

The video is free to watch and there is no need to register. I would love to get your feedback about this video on our blog.

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