Long SPY, Short EEM PAIRS TRADE
It looks to me that the S&P500 is leading the Emerging Markets Index, setting up a disparity that could be resolved in any number of ways:
1. The S&P could rally and the EEM could rally less.
2. The S&P could continue to fall, and the EEM could fall more.
3. The S&P could stabilize, and the EEM could slide lower.
The risk isn't very high in this pair, but keep the risk to 3% and the upside is approximately 5%. You can see that they are 3.6% apart in performance since June (EEM +8.48% - SPY +4.81% = 8.4-4.8 = 3.6)
1. The S&P could rally and the EEM could rally less.
2. The S&P could continue to fall, and the EEM could fall more.
3. The S&P could stabilize, and the EEM could slide lower.
The risk isn't very high in this pair, but keep the risk to 3% and the upside is approximately 5%. You can see that they are 3.6% apart in performance since June (EEM +8.48% - SPY +4.81% = 8.4-4.8 = 3.6)
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.