Now not all pairs look as attractive as this bunch. That upsloping continuous equity curve (RSQ line) (orange line) is actually the most important metric to consider when taking these trades. If current equity is below that line then something either technical or fundamental has gone awry and its best to just stand back from the trade until the RSQ and trade equity get back in line.
There's a lot more flesh to put on these pair bones to make it a whole system but these examples should give an indication of the possibilities.
90 minutes in today...16 hours until 2013 and the Congress looks unable to reach a meaningful compromise on the pending fiscal mess. We're seeing some volume pops this morning and attempts at a rally but one of the NYSE floor traders on CNBC called it a "Fools Rally" that should be sold, not bought. We shall see.