Update: Ensco plc (ESV) VS Halliburton Company (HAL)

I threw out a couple trading ideas last week while I was too busy to blog anything meaningful.  So here’s my quick followup post on the long $ESV vs short $HAL trade.

The setup:

The result:

This market neutral trade netted a couple bucks in an otherwise angry tape.  Not too bad.  I did not take this trade as I was not manning the trading station on Thursday and Friday.  From my perspective (timeframe 3-20 days) most of the edge is gone in this trade and I’d be flat.  I think there’s still a case for being a long-term holder, just not with my money.

It usually isn’t this easy or obvious.  This setup was perfect from a technical perspective and it had a news catalyst.

The other trade I highlighted was long $RY vs short $TD.  I’m still waiting for that spread to drop a bit before I get involved.


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