Checking in with SMALL WORLD its clear that SPY has been leading the way against the foreign and emerging markets. The model has been able to keep pace with SPY on the 3 month level although for the past 2 weeks momentum has been muted.
Sometimes its useful to check out the current short interest levels in a portfolio and here's the breakdown for SMALL WORLD.
EWG short interest is extremely high (bearish) while SPY and EEM are equally bearish.
The problem for the bears with EWG, which has outperfomed all the other portfolio components on a 90 day lookback basis, is that any bullish runs effectively lead to more buying as short are forced to buy the ETF in order to cover their positions.
Short interest is worth tracking when uber high levels such as these develop.