Trade Alert

Trade Update: Pair trading mega cap tech, up $2K from shorting US Treasuries.

_{Posted by Club Member Bonds 29.9.23}

US Bond yields continue to move higher putting pressure on the overall markets throughout most of September, especially for technology stocks.

Falling US bond prices (i.e., rising yields) played exactly into my thesis for a short position on 30-year US Treasury bonds. This trade now sits on a $2000 unrealised profit, which helped offset some of the weakness in my basket of technology stocks.

Overall, I think the pair trade of being short US treasuries against long positions in Mega Cap Tech is working according to plan, and continues to be the best risk-adjusted trade to simultaneously maintain market exposure, via a basket of stocks with arguably the strongest earnings visibility, while eliminating their sensitivity to interest rates.

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#Trade Update #Mega Cap Tech #US Treasury Bonds #Long/Short #Pair Trade

Related Posts: Long/Short pair trade idea for Mega Cap Tech

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