It's all still new to me, but some hedge food for thought. • AAPL / VXX. They move so fluidly together. Almost mirror images in opposite directions. That won't always be the case, but so far, from what I've seen the past few days, it's just so.
• EUO / FXE. The short-euro and euro combo isn't so good a fit. EUO was up nicely today, but FXE was also positive for most of the day. Odd, but true.
• GLD / PHYS. This is a pairing offered by ETF Base, the dude behind Darwin's Finance. He's quite the brain for all things financial and I enjoy his sites. PHYS is actual, in-your-hands gold, and it traded at a premium to GLD recently. Darwin found a way to exploit this. He's really smart. I won't touch this. But watching is interesting.
There are so many ETFs and ETNs out there — more than 1,000 now. Learning is good. Seems that most of them are on the short side. The simpleton view: Can printing euros (and accepting US dollars) overcome a credit crisis in European banks? If the answer is yes, the market prospers in the near term. If the answer is no, I'll pull back, be very picky and use hedges more.
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