The SPY/TLT pair trade is now at break-even. The trade went from around -23% to ~0% thanks to Yellen. Both the equities and bond market rallied the past few days sending the pair trade into break even status. We’ll likely come out with a slight profit. I’ve been closing portions as it rallies, it’s conservative, but we want to have it closed by Monday latest anyways. No harm in reducing exposure. I’ve closed some at 128.5, 129.5, and 130. I am not a huge fan of the trade itself mostly for its future prospects and the unknown ongoing correlations with SPY. There are times when they both go down. I have this feeling that SPY/TLT may not necessarily be negatively correlated in the next few years. Rates are super low, spy is at all time highs, it feels like there’s more tendency for downwards movement for both. Who knows though, I don’t know enough about it and won’t pretend to. Probably another reason why I will continue to reduce my allocation whilst increasing the MIC allocation.