What is it: The SPY Model is a basket of ETF’s that tries to model the movement in the S&P 500

How it works: The SPY Model tries to align with the S&P 500

How to profit: Most of the time the SPY Model is in alignment with the S&P 500 but at times the model diverges. Buying or Selling the model when divergence is greatest is the best way to profit from this strategy. Your making a bet that the SPY Model will revert to mean and realign with the S&P 500

How to play it: The SPY Model is created by buying an equal basket of three ETF Symbols HYG (high yield credit),VIX (volatility),and TLT (treasuries). The S&P 500 can be tracked by buying the S&P 500 ETF SPY. You can monitor this website if needed to get a daily update on the convergence and divergence of the SPY Model and the S&P 500. http://capitalcontext.com/intraday/intraday-spy/

Enjoy your potential arbitrage profits

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