[Editor’s note: The following is an excerpt from a recent, longer piece by Kevin Muir, formerly head of equity derivatives at RBC Dominion and better known for his exploits as “The Macro Tourist." His daily letter is now subscriber-only. The following is reprinted here with permission and is available exclusively to his subscribers and mine. Those interested in trading ideas from Kevin related to the piece below can check out the new MacroTourist here.]
I'm a big fan of Jefferies’ market strategist David Zervos, who, for years, has been consistent on his “long spooz and blues” idea.
For my non-bond crowd, I know you hoped I would stop writing about yield curves and other fixed-income trades, but rest assured, this is important for everyone.
David Zervos pioneered (or at least popularized) the strategy of being long stocks (by buying the spooz contract - the S&P 500 futures) while also being long “blues.”
At this point, some of you will ask, “what the heck does it mean to buy blues?” For the longest time, I was in that camp. These macro guys (don’t give me too much guff for using that noun - let’s face it, they are almost exclusively guys) would talk
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