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

289 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:
DAX - Short term oversold. Partial TP recommended on shorts
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out