StatGury

Home Depot / Lowe’s Pair Trade Beats S&P 500

In my previous message I forgot to mention the misleading title that the author has used: "Home Depot / Lowe’s Pair Trade Beats S&P 500". The trade suggested/analysed by him beat the S&P 500 over a 10 day period. Need a say more? Then he has the gall to say "I will continue to look for additional opportunities to initiate this trade again…. Please leave a comment or email me if you have executed this trade successfully.".

I hope no one paid any attention to this guy.

Home Depot / Lowe’s Pair Trade Beats S&P 500

I always wonder about the motives of people like Elias Tsepouridis. He appears to be too smart to not see holes in his analysis and then I wonder why, if sees holes in his analysis, does he not give the complete picture. So let me warn the readers who might be lured into following his next advice of a similar pair trade. Or even be lured into believing that Elias Tsepouridis is a financial guru. Basically, if two stocks are each selling for $100 a piece and you sell 100 shares of the first and use the proceeds to buy 100 shares of the 2nd. and if you get your grandmother to pay the commission ($20 or so), you will have invested zero dollars so far. Right? Now if the first one sinks to $80 and the second riases to 120, you will make a cool $4000 on a zero dollar investment because you can now sell the second and buy the first and pocket the difference. That is a get very rich very quick scheme. You can even buy Grandma a nice sweater. What is the catch? What happens if the first one rises to $120 and the second sinks to $80. You are in a $4000 hole and next time Grandma will not pay the commission and your broker will chase you out of your house. You got the idea. Now moral of the story: Don't trust Elias Tsepouridis. He is either dumb or dishonest.

Home Depot/Lowe's Pair Trade - Hedged Opportunity For Housing Despair

Nice math guy but would you have written your follow up article if the same pair had caused you a loss of $700 instead of a gain of $700. An infinite% gain looks good but an infinite% loss hurts a lot. Plus your math is wrong. You say that your pair trade will fetch 4.1%. Actually it will fetched infinite percent (assuming that you can convince your aunt to pay the first two commisisons). Where is your statutory warning?

Internet and blogging has given birth to so many financial charlatans. God save your readers.