Wednesday, December 26, 2012

LM and TAQK Updates...12.26.12

Software Updates:   VTV version 4 was sent out last Friday and the updated T2 version 4 was sent out Sunday so all readers should have received the package you signed up for.  If you haven't received the files please let me know.....

The RM (Risk Managed) versions of both the LM and TAQK models went back to CASH on Monday's close.  Monday was technically speaking a non-event with extremely low volume and shortened hours. Historically, such days tend to be bullish and, coupled with the Santa effect, was the generally expected result.  Which only goes to show that Hope is not a strategy. Gold and bonds continue to lag equities, even in the face of overall market weakness.  The SPY TrendX chart at the right side panel shows where we are and where we're likely to go if the markets continue their current trend...back to previous lows.

The NYAD is in a solid sell off this morning (8 am PST) but still holding up fairly well at .81.  With shortened trading on Monday and the markets closed Tuesday the end of this month could be a real firecracker.

It's looking more and more like no fiscal cliff solution solution will be forthcoming by the end of the year and the big push now is for a stop gap measure to at least preserve the status quo.  Its still a wait and see game.

For those tracking LM and TAQK ...Friday is rebalance day, when we realign position sizing to reflect the model allocations.