This is a pair trade Jeff Gundlach (CEO/CIO of DoubleLine Capital) presented at the Sohn Conference this year. His thesis is to short the S&P 500 against the emerging market ETF, EEM.
Every year I run a technical analysis on Sohn conference stock presentations. The ones that intrigue me most are major movers of broad assets and macro themes. The technicals found in this spread confirm Gundlach's thesis and offer a valid trade.
1) Major advanced pattern.
2) Major structural demand for EEM against SPX (blue).
3) Possible double top (purple).
4) Possible TL breakdown.
5) Target aligned with structure.
Every year I run a technical analysis on Sohn conference stock presentations. The ones that intrigue me most are major movers of broad assets and macro themes. The technicals found in this spread confirm Gundlach's thesis and offer a valid trade.
1) Major advanced pattern.
2) Major structural demand for EEM against SPX (blue).
3) Possible double top (purple).
4) Possible TL breakdown.
5) Target aligned with structure.