Long SPX- Short NKY: Sauros isn't Soros

http://blog.thelordoftrading.com/2010/11/long-spx-short-nky-sauros-isnt-soros.html

Nice post sir... I do agree with your short NKY stance. Is your position Net Neutral? Rather, are you equally long SPX short NKY? Just curious but what time frame are you looking for? Personally, we are looking for a lower high on the SPX around 1200 or a double top at 1220... I'd like to short the SPX around this lower high or double top....Unfortunately, Batman is not Soros either, yet (One day).

Batman wrote:

Nice post sir... I do agree with your short NKY stance. Is your position Net Neutral? Rather, are you equally long SPX short NKY? Just curious but what time frame are you looking for? Personally, we are looking for a lower high on the SPX around 1200 or a double top at 1220... I'd like to short the SPX around this lower high or double top....Unfortunately, Batman is not Soros either, yet (One day).

I hope that day is soon, Batman!
Actually I match the volatility of the long-short meaning I multiply by the ratio of their ATR.

The ATR of the SPX is around 14, the one of the NKY is around 130 : my stake on the SPX is 130/14=9.3 times bigger than the one on the NKY. Another way is to use the ratio of the spots but it's less precise to me but not so different

It would be more a medium-long term play as in months while we're currently seeing a strong rise on the spread (see the chart in the post)

Sauros wrote:

Batman wrote:

Nice post sir... I do agree with your short NKY stance. Is your position Net Neutral? Rather, are you equally long SPX short NKY? Just curious but what time frame are you looking for? Personally, we are looking for a lower high on the SPX around 1200 or a double top at 1220... I'd like to short the SPX around this lower high or double top....Unfortunately, Batman is not Soros either, yet (One day).

I hope that day is soon, Batman!
Actually I match the volatility of the long-short meaning I multiply by the ratio of their ATR.

The ATR of the SPX is around 14, the one of the NKY is around 130 : my stake on the SPX is 130/14=9.3 times bigger than the one on the NKY. Another way is to use the ratio of the spots but it's less precise to me but not so different

It would be more a medium-long term play as in months while we're currently seeing a strong rise on the spread (see the chart in the post)

Thanks for the quick lesson. Batman must go study up now