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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 695.41+0.5%Feb 2 4:00 PM EST

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Hank Scorpio
To: Hank Scorpio who wrote (222767)2/2/2026 3:33:00 PM
From: GROUND ZERO™1 Recommendation   of 222800
 
An additional note here on that spread...

If you calculate the ratio from the top of both markets just before the move down you'll see the ratio is about 14 to 1 since the AGQ moved up faster than the SLV...

This means you would be short lots more SLV for 1 AGQ...

When the both moved down quickly that ratio also paid out very nicely...

So, the ratio changes every day as the market moved higher and/or lower...

Calculated the ratio just when you put on the spread and then just leave it alone and let the market do all the work for you...

Once the two markets move out of that general trading vicinity then the profits begin to add up nicely...

Calculate the ratio every few days and if you feel good about the profits, then take that profit off the table and keep the spread as a new spread after that rebalance...

GZ
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