ETN PH Trade

• Posted by DynamicHedge
• on August 21st, 2010

I posted a message to Twitter in real time about this trade.  I’m legging into the position, adjusting as the trade unfolds.  Here is the long term chart I’m working off.  Fundamentally, this spread has the risk of trading $7 lower from here, which would be a spread price of around -$5.5.  Because of the that I’m nibbling on a long position here.  I’m playing technical levels, I’m aware of the risk and I’m sized accordingly.

Here is a 5 min chart of Friday’s trading:

Just observing the price action, you can see that the traders see short term fair value between the two blue lines.  I consider the green line undervalued and the red overvalued in the very short term.  I got my fills in the lower area of the range on the morning push lower and closed out half of my position before the close.  I’ll continue to monitor and update as this trade progresses.  I hope posting these trades sparks some discussion.  Feel free to comment or ask me any questions about the trade.  info /at/ dynamichedge /dot/ com

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