Speaking of Pair Trades-GALE/QCOR Update

On Feb 2nd I mentioned a pair trade between GALE (long) and QCOR (short), both are in the same sub-ind. group, Biotechs.

GALE was at $.72 and QCOR at $34.34, the idea is to hedge each trade. As of today, GALE is up 78% and QCOR is down 16.7% for a net +61% gain in less then a month.

QCOR is definitely volatile, but still a decent looking short, GALE allows the hedge of QCOR and a profit on the pair when the sub-industry group goes in to rotation as the second most powerful force on an individual stock.

 GALE Daily

 QCOR bounced off gap support and is heading in to its downtrend resistance line today.

QCOR chart as it hits resistance.

As QCOR backs off resistance and starts the next leg down, we'll likely have to adjust the GALE position, again sector rotation is the second most powerful force on any given stock on any given day.