GERMAN STOCK INDEX (DAX)
Panjang

SPREAD BETWEEN DAX and RUSSELL 2000 (HISTORICALLY)

174
As you can see this spread shows Risk Appetite.

If Russell goes parabollic like these weeks (Without Reason, just DXY effect, but remember this is bad for US Exports which are key for smallUS Caps)...Also the US 10yrs bond has driven a long AveMaria Pass till 2,30%, which means higher WACC in all Discounted Free Cash Flows Models...)

Yes US Equities, are quoting irrational quantitative ratios.. example KEYCORP a mid US Bank is quoting 6.4 x times Price to Sales Ratio - Highest Ever¡¡¡¡¡

Summary: Reverse Small Caps - and add Big Caps specially in Europe (Example: Germany)

Risks: Remember this is a pair trading strategy

Penafian

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