Nov 4, 2009

The swine flu opportunity

Let's recall the performance during the swine flu period of the spread between the pharmaceutical and the airlines' sectors.

The strategy would have been to buy pharmaceutical stocks during those early days, and sell short airlines stocks, as market underreacted to the news, as it already happened during the bird flu.

If missed the first opportunity, the second one is to wait until the gap is widened the most, until it is exhausted, and bet in the other direction (i.e.: long in airline sector and short on pharmaceutical).

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"El primer caso detectado en 2009 se detectó el 28 de marzo, según la conferencia de prensa ofrecida el 23 de abril del 2009" translation: The first case was detected in March 28, according to the press conference given on April 23, 2009. spread Pfizer-United Airlines-American Airlines (April 23)

... the chart can not be uploaded properly. So feel free to use the dates given to check it out yourself!

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