Actionable Risk Opportunities, Tactical Musings and Timing Indicators for Investors
Friday, February 22, 2013
VTV followup & P6....2.22.13
This is a followup to yesterday's VTV post and, as expected, XIV took a hit on market weakness which is now reflected in the short term metrics.
The issue that is worth pointing out is the effectiveness of the P6 slope in seeing this weakness coming...both in XIV and SPY (and IWM as mentioned since last Friday). At the same time we've seen the P6 go upslope on AGG which is typically bearish for equity markets. Had the P6 slope guidelines been followed regarding XIV and SPY, any monies in those positions should have been closed by the 19th end of day, thereby avoiding the downdraft over the past 2 days. These risk management tools actually do work,,,the trick is in paying attention to their reversals and reacting accordingly.