Not strictly forex, but in the context of broader market risk and its impact on currency pairs, is anyone considering a pair trade with $NDX short and $ES long? Tech seems to be leading the recent downside, potentially signaling a rotation. How might this play into $USD strength?
That's an interesting idea for a pair trade. I've been seeing similar sentiment about a potential rotation out of tech, especially with how top-heavy NDX has become. Could definitely see ES holding up better.
While the rotation idea has merit, I'd be cautious shorting NDX here. It's been beaten up, but big tech often finds a floor quicker than expected. Are you looking at specific technical levels for your entry?
I'm not so sure about the USD strength angle directly tied to this. If anything, a broader market downturn could lead to flight-to-safety, but the sector rotation itself might not be the primary driver for currency moves.