Wednesday, December 12, 2012

LM & TAQK Updates + a Long Term T2 ...12.12.12

The models are slightly underperforming the SPY on a short term basis but our volatility factor (drawdown) stills hold the edge. Both LM and TAQK remain in Hold mode and both the RM versions are Vested.  We might have picked up some gains in the Mosaic models by kicking into an ACCUMULATE mode back around Nov. 19th but the technical signals to confirm the underlying foundation for such a position were not present.  We continue to see the markets see-saw in anticipation of the fiscal cliff (now dubbed the dismal cliff by some in the media).  For now we'll look to the VTV setups to pick up some short term gains and preserve our capital.

Since you asked:  here's a 7 year look at the VTV really low drawdown model posted yesterday. In this case we do engage the top 2 strategy but the algorithm only looks at weekly bars, not daily bars as in the typical T2 model. All indications are this is a robust model requiring minimal maintenance and a providing a safe place to park some of those long term dollars that would otherwise be in money market or piddling CDs. Another attractive feature:  incredibly liquid...convert to cash in less than 5 minutes during market hours.  Note what happened in late 2008 when the SPY hit a nose dive.

And, here's the TAQK update.