Trouble is sometimes the trends continue. You may remember I did
a long ITB short EFA trade last Nov based on the trend continuing
(NOT reverting to the mean). I exited in early Dec with about a
5.8% avg gain so OK but if I had just held it to today I would have
an average 24% gain! Looking at the long XLY short EWZ pair I
mentioned the other day today XLY is up .8% and EWZ is down .5%
with SPY up .2% -- law has been watching the leveraged Brazil
ETFs which of course are moving more. So bottom line I guess you
can't assume anything is going to go back to a historical
relationship.
Title: click to expand Trouble is
Looking for who's leading to the downside in case the ...
Posted by bkout3 on 15th of May 2012 at 01:11 pm
Trouble is sometimes the trends continue. You may remember I did a long ITB short EFA trade last Nov based on the trend continuing (NOT reverting to the mean). I exited in early Dec with about a 5.8% avg gain so OK but if I had just held it to today I would have an average 24% gain! Looking at the long XLY short EWZ pair I mentioned the other day today XLY is up .8% and EWZ is down .5% with SPY up .2% -- law has been watching the leveraged Brazil ETFs which of course are moving more. So bottom line I guess you can't assume anything is going to go back to a historical relationship.
oops -- Matt I thought
Posted by bkout3 on 15th of May 2012 at 01:19 pm
oops -- Matt I thought I removed that too big picture but its still there and I can't get back into edit -- can you get rid of it? thx