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Two Short and Long-Term Trade Strategies

"We’re not long-term bulls on the state of the U.S. economy, but from a short-term tactical standpoint, we’ve been playing upside call spreads from the S&P," said Dean Curnutt, president of Macro Risk Advisors.

“There’s money flowing into the market, you’ve got government backstops globally, and quantitative easing globally—so you’ve got this re-risking profile which you see in the dollar going down, prices of commodities going up, VIX going down,” Curnutt told CNBC.

“So this story has got a little more to play out.”

Curnutt said he likes short positions in the consumer discretionary ETFs like the SPDR Retail ETF.

In the long run, he prefers China industrial commodity trades.

“The VIX is 50 percent of its level back in March, so you get much more exposure with a low VIX than you do with a high VIX,” he said.

“So you get buy a lot of options. We’re still playing the S&P because we think the market is moving in a very correlated fashion—this is still a market where the macro considerations are very important.”

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Disclosures:

No immediate information was available for Curnutt or his firm.

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