Correlation trading of cheap stock

Correlation trading strategy idea analysis.

Today I showed you possible correlation trading of MU.
This was an example of not expensive stock.
In this idea, I will go even further and show you possible correlation trading on the example of GE.
GE is a cheap stock, so it is good for correlation trading with a small deposit.

Look at the SPY and GE charts.
Actual corresponding support&resistance levels look so much alike.
Correlation is good enough to expect future similar moves.

I said in the previous idea that now it is a good time for intraday shorts.
So, it is desirable to watch on support levels with particular attention.

But in one moment the trend can make U-turn.
In that case, a lot of short positions will be clothed.
SPY will return to growth.
So, it is desirable to mark important resistance levels and be ready for this scenario.

Following the correlation trading strategy, it is reasonable to wait for correlated level breaking.
When SPY and GE simultaneously break their resistance levels, It will be possible to buy GE.
When SPY and GE simultaneously break their support levels, It will be possible to short GE.

Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.

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