Tuesday, February 26, 2013

T6 Update ...2.26.13

Lesson 2 on how to adjust the vertical axis of any chart was published earlier today.

The T6 bullish model continues to slot XLU as #1 resulting in a very minor improvement over the SPY on short term metrics.  All bullish indicators....RSQ/Equity cross, P3 and P6 are negative..a condition that has persisted since 2.19.
I suggested yesterday that we were likely to see extra normal volatility until March 1, and so far that scenario has played out.  We had a mini crash in yesterday's last 30 minutes, with a resultant backlash recovery at the open today.  This strength does not appear to be holding (on sub normal volume) but caution and cash are attractive to my positioning right now.
We can see how each ETF in the portfolio has performed short term by examining the component metrics and, as suspected, XLU is the current  bullish outlier.  This is a simple little metrics panel but it delivers a quick snapshot of how each ETF is stacking up.  What we don't want to see is a divergence of the short term metrics and the momentum rankings...then we have to be suspect about the momentum slots.