Scenario # 2 took hold today with the VIX plunging 10% as oversold conditions moved back towards mean reversion parity. GLD climbed back into the bull saddle with a nice .66% gain . . not a new high but an impressive return to it’s close 2 days ago.
A bit of a surprise today but the Short TLT/Long SPY pair trade suggested by the ETFR Pairs Analysis (RPA) actually returned a .5% return even though both ETFs were positive for the day. Maybe this thing really works. Just playing the daily Lazy Man Rotator Long TLT signal returned another .59% so we ended the day with a weird situation where we were net Long TLT for the Lazy Man and net short TLT for the RPA against a Long SPY position . . and both trades were profitable. That’s risk management in action.
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