Just a quick "tweet" here. There is a risk that the post from Friday July 24th had a misleading title. Keep in mind that the post served two purposes: to update readers on our long EWJ:ADRE spread trade, AND to recommend other defensive trades that seem to be in even earlier stages of development. In a nutshell, we like:
Long EWJ versus the following ETFs short:
IJJ, IJS, IWN, HYG. You could probably add MDY to the mix (the S&P Mid Cap 400 Index Fund). Perhaps soon we will add the S&P 500, the Dow, and the Nasdaq. However, Tim is starting to notice some bullish potential on the "Major" indices, so for now, we wait. Should the "Majors" resolve bullishly, that still would NOT invalidate our defensive call to go long EWJ versus ... well ... almost everything!
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