The idea behind this one is quite simple. If the AI trade slows down (it doesn’t even have to decline), then with passive inflows the way they are in these distorted markets, the rest of the S&P stocks just might get the bid.
We don’t do many paired trades, so we’ll treat each side on its own and only enter when the trends agree. $RSP has to pick up first. At that point $SPY likely won’t be in a downtrend, so we’ll start one-sided, with no short side yet. From there, we’ll watch for trend changes and adjust both sides.
If $RSP enters daily uptrend, then we’d be long.
We’re also looking at $RSP/$QQQ.
As always, all trades will be posted.
