Profunds index and sector trading

[was Steve]

nothing at all really. lots of reports at 830 am that could swing them up or down. i expect europe will be off 1.5-2% before we get those numbers to catch up to our afternoon carnage. congrats on your short trade by the way. do you still hold the hedge.

one combo trade i looked into months ago was a pairs trade. for ex something like btk sector and ndx. you play with multiplication factors to make even weighting. then when the performance of the two gets to an extreme percentage diffence you buy the btk and short the index. you profit over time as they return to their historic delta. can be good for 10% or so over a few months which is nothing to sneeze at. i used performance charts to hunt down these opportunities. i will look into it again probably in may when i have more time.
steve