The bread and butter of my strategy. These are weekly swing trades (sometimes intra week) – long short spreads. This will mostly be International ETF’s. I will also have sector ETF’s from time to time as the action warrants it. These trades are meant to be done together and I’ll be tracking the performance of each long/short pair for the return. I’ll be sending a weekly trading summary dealing with the swing trading pairs, and I’ll give updates as events rise to take advantage of.
Weekly Swing Positions
Long 1 QQQ/Short 1 ASHR
Long 1 SPY/Short 1/2 EEM Short 1/2 TLT (*New Position)
Buy (Cover) 1/2 unit EEM: Limit 40.90 or lower
This spread is one that I believe will mean revert, as EEM and Asia have outperformed the U.S. However I want to make the room for a trade we need to be part of as I haven’t seen the likes of which in years. And remember I only have 4 total units in the Swing Account to work with. We will keep 1/2 unit EEM on as I think the trade still has a high probability of working.
Short 1/2 unit TLT *New Position 159.50 or higher
The move-in US Treasury bonds have been spectacular since Coronavirus broke. I’ve been waiting to fade this move and sitting on my hands for about a week now waiting or capitulation. And alas today it seems we’re getting it with the 10 Year Treasury touching .70 a level never seen! This is truly the place people are panicking and by default, I think its worth a shot on the other side. TLT is the US Treasury ETF. The price of the ETF moves inverse (opposite direction) of yields. When US yields collapse it goes up hence the parabolic move up in the ETF TLT and why I think it’s worth a short quick trade.
