Tuesday, October 18, 2016

M6 Market Outlooks...10.18.16

Reviewing the current M6 momentum versus mean reversion modes leaves us in the same position as last week...virtually no edge in following  a single mode.  As with last week, the mean reversion model does display a better short term equity curve.
Running both modes creates a risk profile that looks a lot like a divergent pairs trading setup and surprise, both models made money today as both TLT and XLU were green..
We'll continue to post these profiles on a weekly basis as I move towards a more structured graphical format for Newsletter posts in 2017.
Intel and IBM disappointed after hours so expect weakness in the Qs tomorrow.