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Hedging NQ




As I stated in a different post, I wanted to hedge part of my short NQ position and I thought this 3 year chart of ES-2NQ was interesting. Even though I think both are overextended, ES-2NQ is at the lower end of it's range. By buying ES versus the short NQ position I am hoping to hedge myself against further increases in NQ but gain if the relationship reverts back to the mean. I went long ES at an average of 1314.75 last night which was near the high, and this position is losing now but the overall position is improved as NQ has also come down a bit from it's highs last night. If bonds increase I plan to add a short there as well as an additional hedge.

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