Thursday, January 26, 2017

EEM Prospects..Part 2...01.26.17

Following yesterday's EEM post here are 2 completely different views based on the MO2 pair trading the first case EEM is paired against UUP (Dollar) and in the second EEM is paired against EWJ (Japan).  These are both divergent pairs...that is..when EEM goes up UUP and EWJ typically go down. Signals are based on the z-score,..,a modified standard deviation metric.
Both models have EEM in a short status...BUT, ..look at the equity curves....these trades are currently in the red.
EEM did fall today but not nearly enough to fire our stop.