Long Dow, Short Russell 2000- Real Money Trade
I just initiated a long position in "DDM" The Ultra-Long Dow 30 ETF, and a long position in "TWM" the Ultra-Short Russell 2000. I initiated this paired trade to try and capitalize on what I believe will be a continue "flight to quality" as managers shift their money into more of the large cap names. This has been occurring over the past couple of months and I think should continue as managers balance their fear that this rally is "phony" and stretching the fundamentals (and therefore want to be in more established companies with more earnings visibility), and the fear of missing the rally before the year-end. Thoughts?