Tuesday, July 23, 2013

Commodity Update...7.23.13

Well its kind of an update although USO is still firmly in the #1 slot.
The item of interest is the migration of GLD to the # 2 slot.

What we are not seeing is a reversal in Commodity model P6 slope, as in the X sector model.

We should also mention that the maximum total drawdown over 2 years was actually higher in the T2 model than in the SPY, although you will also recall that the Commodity model was soundly outperforming the SPY for most of the Spring before the P6 slope went negative around may 1st and the model went to cash.
For now the commodity model still looks encouragingly bullish although 8 of the component charts are exhibiting RSQs with negative slope so caution is still warranted.
Click once on chart to clarify.