Mean Reverting TLT/SPY

Currently the SPY is up 5 days in a row, normally ETF’S are mean reverting vehicles in the short term.  If you are into mean reverting trades like I’am TLT might provide an opportunity.  The TLT  has gapped down to its 200 day moving average where it can possible bounce, and if the SPY retraces the TLT should move up in price.  Also, there is a possible inverse head shoulders on TLT.

According to Sentimentrader here is how the market has performed the day of and the day after non-farm payroll numbers: Stocks haven’t reacted very well to the Nonfarm Payroll report lately, with the S&P down the day of the release 81% of the time since the beginning of 2011.  It was also down 77% of the time the day after. 


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