My -XLY/XLP position is working well.  The spread between the two widened and lately XLY and XLP have moved up with the market but have maintained the spread caused by economic anxiety. 

I am seeking other candidate pairs which would enjoy the same effect. They would move togeather with the market but spread more widely with any economic turn down.

Any suggestions.

My position long 2x XLP and short XLY  currently has a gain of 4.3%.

That could be sweet. I have an XLP / -XLY pair position which has been good so far. The idea was for a low risk play on deteriorating conditions.

A possible plan

Matt, What about Buy/Cover stops on lower highs?  

Long XLP, Short XLY Pair Trade is working out well.  I would be interested in other pair trades for low risk profits on the economic down side.

Nice resource for tracking the 10-3 bond spread.

https://www.newyorkfed.org/medialibrary/media/research/capital_markets/Prob_Rec.pdf

Matt, I have pondered ways to quantify the state of the system. By that I mean some kind of scoring to include the state of the multiple systems.  Something like adding  the profitability scores of each active component.  Since the systems represent different strategies, maybe multiple indexes like Reversion to mean, momentum, trending, etc. 

Just a thought or two. Thanks for your many hours on systems. I think they speak to those of us who are not able to profit from the watch list.  For example, I have continued to be a member primarily for the analysis and the systems.

Matt, Not to be ungrateful but the type on the spreadsheet is a strain for those of us without 20 year old 20/20 eyes.  Please do the best you can to use larger fonts. You can set the longer fields to wrap, if needed, to create more horizontal space as a help. Thanks.

Interest spread.  Notice gold does decline with the early decline of the market but then climbs during the major down slide.

Vertical Calls & Puts

I am using more and more vertical calls and puts to hedge.  The out of the money positions I try to select to reduce the cost of the overall position in order to own more shares. I usually can get a 4 to 1 ration of cost to maximum return. While the likelihood of winning is modest, it produces a very economical fixed cost hedge. As with everything else, timing is everything.

So far it is doing well on this pullback. 

Best investment... Buy a bulldozer to rent to shoreline cities where the businesses and citizens will demand "action" to mitigate global warming and taxes from "the rich" and those naughty corporations.  No personal responsibility will be taken and little climate change action will be implemented, too expensive and unpopular.

Treasury Curve

https://stockcharts.com/h-sc/ui?s=%24UST10Y-%24UST3M&p=M&b=5&g=0&id=p26064610266&listNum=1&a=655937964

Any chance that precious metals and/or miners could be added to the 401k segments?

To answer my own question, somewhat:

I am curious to see a  comparison of the sector lists at the top and the bottom of the last two turn downs following the inverted yield curve to see how they fared.

Matt, Interesting idea but I'm not crazy about the YouTube video.  I don't think the video format adds more that it looses.  I often like to stop the audio and look at the live chart, either during market hours or just to adjust the time frame of the chart for consideration.  I also tend to move forward or backward to check charts as you speak.  I know you included the charts but the combination with audio works best for me.

The Spy System is a great achievement even if less than perfect.  It adds an extra dimension to the market analysis and the trade opportunities. I for one have never been able to take advantage of the trading so I am left with the market. The SPY system was a true test of market analysis and its statics are impressive.

My difficulty with it was that it may not have been simplified enough avoid missed or late signals, and due to my life style, I often was unable to track the system effectively. Posting on the community, e-mailing and texting all have there issues.  I have considered a couple of possibilities for additional communication but that is not the entire story. Also, possibly designing in a 2 or 3 o'clock cut off would help. 

Matt, in any case, the system is a source of value for me on BPT and if it can be tuned up to avoid the overhead for you and for the members, I recommend it not be abandoned. Trading the trades list  is demanding.  The market technical interpretation is maybe this or maybe that, even when it is very good.  The SPY system is a tangible test of technical analysis and for that reason is very interesting and hopefully can even make us some money so I recommend you do your best with it and keep it on the site.

Possibility,  a second bottom then up to a lower high{

https://stockcharts.com/h-sc/ui?s=$SPXA200R&p=D&yr=10&mn=10&dy=0&id=p27522309380&a=636011878&listNum=27

Schwab system says KBE has a Put /Call of 7.05.  Could this be real?