Equities & Bonds: Trading the Ratio

“The equity/bond ratio is often use as an economic indicator and signs of potential equity strength or weakness. Currently, the S&P/Bond ratio is trading at all-time highs. Therefore, tastytrade looks at retracement pairs trades in their respective futures, /ES and /ZB. Then, to take it one step further, tastytrade utilizes correlation with the Russell (/RTY) to create another pairs trade with ETFs TLT & IWM.”

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