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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: kx who wrote (167413)	1/31/2022 6:58:12 PM
From: GROUND ZERO™	2 Recommendations Recommended By Hank Scorpio Mevis Read Replies (1) \| Respond to of 218568

Great question, but the arbitrage relationship and/or the price discrepancy between each of these two ETF instruments works far better than a simple net long or short... It would take a lot of explaining but if you look at the way each moves over time then you would see what I'm talking about... To start with, the SOXX moves 1X the distance in price, the SOXX moves 3X the difference... The relationship between both over price makes this kind of spread profitable regardless of whether these two markets move up or down... For example, If we go to new all time highs, then this spread as I have it set up will generate roughly $32K in profit and if the markets move down to the March 2020 lows then this spread will generate roughly $155K in profit... In either direction there is absolutely no risk... I also have this kind of spread for the QQQ/TQQQ and for the IWM/TNA... Each of the other two spreads will also generate gains more or less regardless of which way this market moves... I hope this answers your question... GZ