We got the bearish short covering reaction that I suspected was coming today after Friday's rally and the NYAD fell dramatically from a close of 7.52 on Friday to the teens today. A bit overdone maybe.
Here's the latest look at the TLT mean reversion model which continues to deliver respectable returns with minimum drawdown. The flattening equity curve, the short term ALERT and the downslope TrendX suggest momentum is waning however so it may be prudent to scale back positions and await more opportune signal odds.
This week's M3 INSIGHT looks at 2 completely different XLU setups, the later of which is surprisingly simple yet profitable.