We closed out the short trading position that we spoke about last week in CAT. CAT had declined about 4% since then on disappointing earnings.

Today we closed out the pairs trade we wrote about on July 3 (+CHY/-CHI). We entered the trade at a spread of 6.3% and exited today at a spread of 5.09%, the difference represents the profit. To profit on a trade like this, you need the spread to narrow, which is what happened here.

see https://envisionco.net/?p=165