Pairs Trader

October 23, 2014

Pair: Xcel Energy – CMS Energy (XEL – CMS)
Action: Buy XEL, Sell short CMS
Shares: 155,159
Weighting: dollar
Spread Entry: 0.74
Stop: 0.35
Target: above mean

Bought XEL at $32.90
Sold short CMS at $32.16

Opened 2nd layer long position explanation: We opened our 2nd layer long on the pair this morning, as the pair came
back to lows of $0.65+ and caught a slight bounce at $0.74. Let’s watch closely to see if the pair maintains upward
movement, or if it goes back to the $0.65 cent area. If so, will add layer three, and close layer two at that point.
We would then have two full layers at even better trade locations. Our target mean is presently at $1.16. ; )

ShadowTraderPro

Please note: All emails are price sensitive.Therefore, all
recommendations, unless otherwise noted, are applicable
for ‘DAY’ orders only, not good-till-cancelled.If a
recommendation cannot be filled, we may choose to resend
the email the following day along with any modifications.

*****Securities and options involve risk and are not suitable for all
investors.*****

October 21, 2014

Pair: Xcel Energy – CMS Energy (XEL – CMS)
Action: Buy XEL, Sell short CMS
Shares: 155,159
Weighting: dollar
Spread Entry: 0.77
Stop: 0.35
Target: above mean

Bought XEL at $32.32
Sold short CMS at $31.55

Opened long position explanation: We opened our pair long this morning, after the good fortune of great trade location
with this pair. Let’s see if the pair continues to bounce, or if we get the opportunity to add another layer at a
slightly lower price. Either way we are excited for the trade. We are expecting an exit above the present mean of
$1.18, depending on the momentum of the pair.. ; )

ShadowTraderPro

Please note: All emails are price sensitive.Therefore, all
recommendations, unless otherwise noted, are applicable
for ‘DAY’ orders only, not good-till-cancelled.If a
recommendation cannot be filled, we may choose to resend
the email the following day along with any modifications.

*****Securities and options involve risk and are not suitable for all
investors.*****