I just wanted to share with you that one of our traders has done very well trading the $AAPL versus $AMZN spread. These two companies don't leave traders indifferent as to their respective valuation, momentum, technical analysis, and management. We have our own opinion as well about how to trade these two stocks against one another on a short time scale. We add statistical methods to the traditional toolkit. The additional information is very helpful in the pursuit of trading profit.
The image below displays the relationship between $AAPL and 2* $AMZN. On a five year time scale the spread exhibits strong mean reversion.
We have web enabled our spread analyzer. What that means for you is you can use our spread analyzer tool for free right here. You can use the tool to analyze how the $AAPL $AMZN behaves at different time scale. You can also use the spread analyzer to analyze a combination of stocks of your own choosing. The analyzer will not work with Internet Explorer (IE) because of how Microsoft handles security within IE. This will be resolved shortly. The tool works fine in Chrome. You can download Chrome right here.
Go out for a spin and let me know what you think!
Written by Michael Bigger. Follow me on Twitter and StockTwits.
