Friday, August 26, 2011

Where to hide?

In any vol compression, market stabilizing market, we can expect first yields to blow out with vol expansion, but also a compression just as quick.  Another way to take advantage of high vol is to get short spreads in yields.


LONG       $HYG
SHORT     $ES_F (.25 UNITS)

Graph Spot close Aug 25th = 1.2635

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