MarketClub Videos: APPLE vs RIMM ... battle of the tech titans

APPLE vs RIMM ... battle of the tech titans

It is the battle of the tech titans as both RIMM and APPL 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.

I am looking for the general market to show weakness through the next week... with that said, I 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 I call "pair trading." You're looking for the percentage change in the market between RIMM and APPL to move in Apple's favor no matter which direction APPL or RIMM head.

In my 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.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

Published: 2009-05-14

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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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