Tuesday, December 18, 2012

VTV View... 12.18.12

This is the metrics panel of the VTV upgrade to be released later this week. Because there's so much info here you may have to click on the image to enlarge and view properly.  Same story with the chart portfolio below. 
Many market gurus have suggested that with Obama's election there are 2 sectors likely to outperform the rest of the markets...IWM and XLV (small caps and health care). Taking that cue I've replaced the Qs with IWM in the VTV mix and the resultant lineup of momentum is pretty amazing with XIV and IWM consistently in 1 and 2 slots.
On the downside the charts have the bond ETFs looking just plain awful, with TLT taking a huge hit Monday and following up with another big slide so far today. GLD is stalled in place, still looking for a rally.
Logically speaking (which seldom applies to the markets) the bears should be leading the way, but expectations for a fiscal cliff solution and anticipation that retail sales will help bolster the markets have us solidly in the green.  Plus, this is seasonally a bullish tile of year as hope springs eternal for the new year.  For now we just have to follow the signals and be ready to exit at the first sign of a reversal.