- Long held view on Risk Off coming together and delivering now.
- View expressed across 5 contracts : -ES, -URO, +TY, -HG and -CD for a small measure of "diversification", but aggregated for risk management purpose. Important that I am not deluding myself on large size of 1-way bet here.
- In chart terms - TY, ES and URO have already run ahead, in deep trending mode.
- Sell signals in HG and CD are fresh.
- Awaiting 2 more signals (SP500 1136 and EUR/USD 1.3499) for 1 last step up to full house Risk OFF.
- When it is time to square up, will do so with the leaders (ie TY) first.
- Also consider rotating risk from the older trenders to the new trenders (CD and HG).
1 comment:
All 5 contracts are of course highly correlated.
By "diversification", I mean spreading bets so that one is not left feeling frustrated sitting on 1 position in a lagging market whilst overall Risk Off view is performing.
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