Leaving money on the table?

Perhaps we are. All three pairs that we closed between 6.5% and 8% range went on to make more than 11% eventually. Well, we are probably closing out a little too soon.

On a separate note, the strategy has a stop loss at 15% on each pair. At this point no single pair has reached that stage. RS/SID is getting close though. If you have a lower risk appetite, you could close out at the current loss of 10%. Steel companies in US were hit by Areclor's poor results. SID, based in Brazil is not hit as much.

Industrial parts (Trade Entry)

Long CLC at 33.28, Short wts at 26.95 ---Beta diff 0.02

Close out SONO

Close out SONO at 22.08, TMO at 45.79. Profit of $196. A 6.7% return in 1 day.

Cut Exposure (SPG )

Close out 1 contract on SPG at $85. Loss of $25.

Medical Products (Trade)

Long SONO at 20.62, Short TMO at 45.61 --- Beta difference of 0.21

Close out ARO

Close out the option on ARO at $40. Pocket $50... Not too bad in a matter of a week.
Still hold on to SPG (Small correction, the portfolio invested (or rather went short) on two contracts on SPG).

New Trade (Mining)

Long RS at 36.31, Short SID at 24.78. Beta difference 0.12.

Close out ETN

Close ETN at 50.50, DOV at 35.00 to pocket $232 (7.7% return)

REIT Short...

My argument against Commercial Real Estate is the aggressive cap rate assumptions being made. The recovery will most likely be muted. There will be more pain at the Malls and other parts of CRE. Accordingly would recommend a short in SPG at a strike of $60 (sell August $60 to pocket $60).

AVB could be another short play on the Apartment REIT. Although liquidity of the trade is a concern.

Another REIT pair

Long PPS at 12.9, Short BXP at 50.73