mustafa_a

mustafa_a Updated 

Short UKOIL, Long USOIL: Since their ratio is extremely high, mean reversion is highly likely.

mustafa_a Updated 

According to TA (purely), after breaking neckline and pullback, Gold offers a favorable risk/reward ratio. Trading solely due to TA is riskier but risk/reward ratio is good and I am going keep an eye on it.

mustafa_a Updated 

DJT move since 24 December looks like an impulsive 5-wave pattern (With RSI divergence). Retracing to 10k is possible with coming earnings reports and profit taking. 10k - 9.5k will offer good risk/reward ratio. It would be wise to keep an eye on this.

mustafa_a

After December selloff, SPX is at all time highs where Russell is clearly lagging. I think the reason is that after panic investors are now biased to buy big company stocks rather than small and risky ones. I think Russell will catch up with SPX if (!) this performance in SPX will continue.

mustafa_a Updated 

There is an anomaly in the UK to US oil ratio. It is almost 3 std away from its 100-day simple moving average. This means that UK oil is undervalued relative to the US counterpart. At this situation, shorting US oil and buying UK oil with the appropriate position sizing ( such that every percent move will give the same profit/loss) is sensible.

mustafa_a

There is a historical positive correlation between the S&P and US10Y. For past months this correlation is irrelevant and there is an opportunity (IMO!!) for long/short strategy. With appropriate position sizing, opening a long position for US10Y (short bonds) and a short position for the S&P is sensible.