Battle Of The Tech Titans

A little over six weeks ago I showed you a video Adam did on the relationship between Apple and RIMM.

I called it the “Battle Of The Tech Titans,” and in this short video he explained that he felt the relationship was changing between Apple, Inc. and Research In Motion. He detailed a strategy on May 15 of approaching this market using a trading strategy that he calls “pair trading” or “trading pairs” which I do every day with Forex. That's why this was perfect.

What trading pairs means is that you buy one market while going short the other market in the same sector. Now Apple and RIMM are battling it out right now in the smart phone sector. It remains to be seen who is going to be triumphant in this battle but it would appear as though Apple may have the upper hand based on its very successful “APP” store. (This is the update...neat.)

Trading pairs is what many EQUITY professionals do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. So the first short video discusses the cool strategy and the second is the update that just came out today.