The S&P 500 Financial Index found technical support at the 1370 level around 1:00 pm and the market rallied off the support base of the financials. ETFC, AMTD, CFC, and GS all rallied off the support base at 1:00 pm EST.
In our earlier post regarding Global Relative Economic Arbitrage, our trading position is based on the relative correlation between various economic trends in the market. We have determined certain relationships exists between certain sectors and the relationships modeled and traded for tremendous profit.
The current market can be modeled on the Yen/Dollar ratio against the S&P 500 Financial Index.