Wednesday, October 17, 2012

LM and TAQK Updates...10.17.12

The fixed allocation models are not performing well this week as evidenced by the fact that both RM versions of the models remain in cash.  The bond ETFs have reached oversold levels which have typically produced a bounce.  The momentum rankings mirror the SITUATIONS rankings to the extent that TLT is holding #1 slot, perhaps a bit of a mystery but the rankings are based on 7 day momentum so we're playing catch up at this point.
QQQ is suffering from the APPLE malaise with similar results in XLK.  With the holiday season approaching, the release of the mini and great expectations for consumer spending, the odds are in APPLE's favor going forward unless they stumble with another Foxconn type blooper.

Volume has been very low so far this week as we approach options expiration this Friday.

GLD is once again looking toppy but its participation in the fixed allocation models is relatively small so downside risk to the portfolio is  limited.  The covered call GLD hedge mentioned in previous posts is my current tactic.