leftey

spx and its gravitational strength to pull soxx and iwm inline?

SP:SPX   S&P 500 Index
Have become lost over the last few months. The markets behavior has me stumped. how can the biggest financial market on the planet ignore the warnings from every other developed nation? Week after week, the night shift raises the bar, while day time bulls struggle to hold the line. This cant be healthy.. but i would like to try to profit from the action.

My biggest fear is getting into a rhythm and having the floor fall out. Which seems like an almost certainty at some point. I imagine, one day China will just withdrawal from the 'talks'. These talks seem, from my perspective, to be trumps attempt to inject our big biz into china's economy. I just dont think China wants this. They have their own big biz they'd like to nurture and help to take over the global economy..

This is my idea for a somewhat safe pairs trade between the iwm and soxx. Clearly they have diverged, after many years of a close relationship with the spx.

short soxx
long iwm
wait for each to find spx.

maybe bottom falls out? maybe not?

The trump formation is proving to be resilient to bad news..
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