SP500/DAX spread sell - Relative value trade for pull back

294 1 2
This chart (black cont. line) represents the relative value spread between SP500             and the German DAX             .

The spread has reached a critical Key Level. The question here is if DAX             is so much worse, or in other words SP500             is so much better? I sold this spread, which means I BOUGHT DAX             and SOLD SP500             against it as relative value trade.
Either DAX             will recover more from this oversold level, or the SP500             has to collapse a lot more.

Anyway, you can put a nice tight stop on the trade in case, and risk-reward from this level is not bad at all if the spread compresses a bit again.

Note: You need to manage and monitor this trade manually. Do not place stops on any legs in advance. The trade idea is a short term idea.
Obviously I opened this spread trade too early. But the position is very small, so still waiting for a pullback. This morning was a bit scary, but it's been recovering in last 30 mins.
Pls also check recent post about DAX itself:
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out