Please first read my previous spread call on the link below! Actually the trade has worked even better than expected.
I have already closed out the previous long Estoxx50 / short SP500 spread, when it reached the original tgt. Now I open position into the opposite direction.
Reasons:
- The price (spread ratio) has got very far away from Kijun and Senkou B, so at some point we should see a pull back towards equilibrium level
- MACD is turning back to bullish, Slow Stoch has been extremely oversold
- HA candle yesterday had small candle within the body of the previous candle, while haDelta was ticking further up
- haDelta more above SMA3 and crossing back above zero line
Please note, that this is not a directional equity index bet, but a relative value trade. It can perform either on general bearish or bullish mkts. This is a question of which index will perform better in the close future. So in this case either EUSTOXX50 has to show some correction from overbought levels, or SP500 has to make a bullish breakout and catch up in performance to the European index.
I have already closed out the previous long Estoxx50 / short SP500 spread, when it reached the original tgt. Now I open position into the opposite direction.
Reasons:
- The price (spread ratio) has got very far away from Kijun and Senkou B, so at some point we should see a pull back towards equilibrium level
- MACD is turning back to bullish, Slow Stoch has been extremely oversold
- HA candle yesterday had small candle within the body of the previous candle, while haDelta was ticking further up
- haDelta more above SMA3 and crossing back above zero line
Please note, that this is not a directional equity index bet, but a relative value trade. It can perform either on general bearish or bullish mkts. This is a question of which index will perform better in the close future. So in this case either EUSTOXX50 has to show some correction from overbought levels, or SP500 has to make a bullish breakout and catch up in performance to the European index.
