From QuantLabs.net: “Scanning US markets for hot sectors to pair trade or arbitrage “

I recommend followers of Insight Corporation to check this Blog and this post in particular. Why?  It is about the list of Videos and the supporting material found in there to help the interested get a grip on Algorithmitic Trading:

Scanning US markets for hot sectors to pair trade or arbitrage

Here are my first set of call with this potential Pair Trading/Arbitrage strategy. This will be part of my Algo Trading Course in Python which you can find here

These are my ‘market calls’ as explained in my video. Just remember my disclaimer that I am not a register financial advisor and these are only for research purposes!

I will check back in a few weeks to see how these did

First call Mar 7:

 

REIT-Residential

 

Long EQR Short OAKS

 

Mortgage Invesment

 

Long LEN Short BZH

Mortgage Investment

Long HTGC Short JGW

 

And here it is Bryan Downing – the founder – talk about the issue in the post: the strategy of pair of stocks trading: ” Scanning US markets for hot sectors to pair trade:



 

The perils of Equity research on Valuation

Today I post here what has been to me a rather important if somewhat surprisingly discreet post in FT’s Alphaville about what sometimes happens to companies’ valuations. It follows an event of a sudden drop in the share price of Quindell PLC after Gotham City Research, an equity research house, released their valuation report about the company. Alphaville’s Dan McCrum sums it up brilliantly:

”Without attesting to the quality of the research, which goes into great detail about the accounting, two things immediately jump out: Quindell listed via reverse merger in 2011, since when it has had three different auditors.

Other tit-bits include the allegation that the New York office does not exist, and that while the chief executive invested £11.5m into the company between 2001 and 2005, the company spent the same amount building a country club.”

Fair markets deserve fair practices of Research houses, proper checks of conflicts of interests. And a way of accepting the checks and balances of assuring transparent and competitive markets which is understood and accepted by all involved. Otherwise the point of much of criticism of Market Economics is strong indeed.

The full report of the Research in the link at the bottom. Further developments will certainly follow.

QPP

Quindell PLC: A Country Club Built On Quicksand