etfmsolutions: T 3 Update.. 9.20.12

Thursday, September 20, 2012

T 3 Update.. 9.20.12

T3 still likes the same top 3 as on 9/10 but equities are clearly stretched to the overbought side of the equation currently. Note the behavior of the SPY - TrendX on the right side panel. A dip is overdue.

In early going today (90 minutes in) materials and energy are getting the fish eye so GLD and XLE are showing a pullback but the NYSE advance/decline line is rising, which typically indicates underlying buying rather than selling.
Whether this is a short term blip or something more substantial remains to be seen.

The TLT Long alert yesterday was reinforced by this morning's pop and the next confirmation of a possible trend change in bonds will be a movement of TLT from the #11 slot to something a bit more positive (remember XLE's recent excursion across the matrix).

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