Saturday, July 21, 2012
On the ranking scale bonds have moved back to slots 1 and 2, indicating the need for a "risk on" approach to the major markets. Meanwhile the RM model maintains ON, showing the model momentum is continuing to accelerate while the SPY falters. the right hand charts, especially the top short term version illustrate the different in performance. The flat portion of the RM (red line) chart reflects periods when RM was in an OUT mode and the portfolio was in cash. Note what happened to the SPY during this same period. We didn't lose much opportunity cost in the process and if the equity markets had tanked at that point cash was the place to be.
Monday we'll make some portfolio adjustments that should insulate the portfolio even further against drawdown risk and later in the week the TradeStation performance reports will be available for the Delta Band system (via email request.)