Per reader requests I've added the performance metrics for the T2 (top 2) model for the Saturday posts.
The TLT Alert that fired Friday morning looked more and more suspicious as Friday progressed, but that's the way they fired. All things being equal TLT should have closed in the green given the swoon in equities but more than a few fortunes have been lost using the "should have" mentality, so we'll just have to wait this signal out. On the 5 day lookback TLT in slot #3 has caused the most damage for the T3 model and we're looking to refine the algorithm that drives the momentum rankings to improve its forecasting ability.
For Monday, last week's T3 top 3 ranked have kicked TLT and XLP has been added for this week.
The T2 model, which focuses on the top 2 momentum ETFs, is turning out to be a better risk model in all time frames within our 2 year lookback period.
Per our caution earlier this week GLD is looking tired and due for a pullback. It's move on Friday to #3 ranking may be a forewarning of further weakness to come.
