I prefer buying Eurostoxx50 vs short SPX.
- Ichimoku setup is bullish. Chikou is at support, forward Kumo is bullish
- Weekly candle body shrinks at Kijun support
- haDelta+ and haOscillator turn higher from their lows
- EWO is positive. MACD shows bullish consolidation
Something has begun in last few days in Europe. Price action in Eurostoxx50 index has been really strong both outright and relative to SP500.
Stoxx50/SPX spread - weekly (left panel):
- Spread rallied quite a lot since June, crossed back above Kijun Sen. This was remarkable, as the value had been holding below Kijun Sen since July/2015! From the October top, we...
The spread between the two markets has reached an important support level at the daily Kumo.
Now looking at the Heikin Ashi signal the spread should start to sink a bit again, which means it is time to buy some EUSTOXX50 index vs selling SP500 as a relative value trade. The trade can be important for those who opened the long direction last time I recommended, and...
This is not a directional trade idea, but a relative spread trade.
-The extreme preformance of European equities over US SP500 index has been clear so far this year. However based on Heikin Ashi signal (including haDelta/SMA3), chance for short term trend break, and possible Slow Stoch cross I'd say it is time to buy SP500 vs selling Eurostoxx50 Index, at least...
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.
- The price (spread ratio) has got very far away from Kijun and Senkou B, so at...
We can not just bet which way a certain equity index will move, but we can also bet on their relative performance regardless the general direction.
The chart represents the relative performance of SP500 Indx over the Eurostoxx50 composite. The candles are set to Heiken Ashi to filter noise a bit.
For now we see the following signs:
- the ratio reached previous...