Trade Idea: Royal Bank of Canada (RY) VS The Toronto-Dominion Bank (TD)
- Posted by DynamicHedge
- on June 1st, 2011
This is a setup that is starting to come in focus for me. $RY – $TD is a long-time favorite pair but I haven’t traded it since last summer. Statistics aren’t as good as you would think for this spread and it can be a really slow mover.
The spread is not quite ripe for a position yet, but $RY is starting to look cheap relative to $TD. Keep an eye out for $RY to print $55.50. A big red flag would be a new 52-wk highs in $TD.
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DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
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