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  • 玩股如赌--Swap Spread vs. Equity
    Reviewing historic 2 year Swap Spread curve (Bloomberg USSP2) vs. S&P Index (Bloomberg SPX), whenever Swap Spread largely widens Equity drops. When Swap Spread from highest turns to lower, Equity will be up.

    2 year Swap Spread from Nov 21 101.5 continuously drops to today around 86. It should be right time to enter Equity long position.