Monday, May 6, 2013

T2 Shuns XLU...5.6.13

The T2 default model has cast our long term winner XLU to #4 slot and today's current -1.25% hit to that ETF will probably push it even further to the right.
The Qs have been the big recent winner, driven by Apple and MSFT.  When tech and the financials (XLF) lead the market sectors this is typically a sign of bullish underpinnings and more upside to come
On the other side of the coin is this posting from Zero Hedge re: Goldman's assessment of possibilities for the rest of the year. These periodic postings from Goldman have a checkered past of reliability and need to be considered with a touch of skepticism but the analytics do argue for at least a pause.
Click once on chart to clarify and enlarge.