It is the battle of the tech titans as both RIMM and Apple battle for the smartphone market share. Although Research In Motion is a well established tech giant as the creator of the BlackBerry, they may have hit a wall with Apple, Inc.’s launch of the phenomenally popular iPhone.
This tech battle may create a way to trade these markets with a lower risk. During this latest rally, RIMM did not perform well, nor were the changes in price as exuberant as the shares for AAPL.
We are looking for the general market to show weakness through the next week… with that said, we expect to see RIMM slide faster than AAPL. It may be conservative trading strategy to buy Apple and short Research In Motion. Take an equal amount of money for each market and buy a corresponding number of shares to balance the positions and decrease risk.
This is what we call “pair trading.” You’re looking for the percentage change in the market between RIMM and Apple to move in Apple’s favor no matter which direction APPL or RIMM head.
In our new short video, you will learn why I came up with this strategy and why it may offer a low-risk trade in the current market environment.
As always, the videos are free to watch and there is no requirement for registration.
Where do you think Apple and RIMM are header, or the NASDAQ as an index? Please feel free to leave a comment!
Today’s Stock Market Club Trading Triangles
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