Keep in mind when you're looking at T3 that the
other versions such as T2 offer different levels of risk exposure. We focus on T3 as it tends to provide a more balanced view of the equity/bond risk spread and helps to see the "noise" in between the inevitable swings in that balance.
Following yesterday's post we've added the GS2 to the signal portfolio. For the time being the GS2 signal will be limited to SPY, QQQ, TLT, XLE, IWM and GLD. The other portfolio components are less cyclical in their behavior and do not produce acceptable risk/reward opportunities (in my opinion) using the GS2.
Experienced technical traders and investors know that the last day and first day of the month are typically bullish as mutual fund money gets pumped into the markets. That cusp has now pasted and we're ready to see how October unfolds.
GLD and XLV continue to hold strong although the bond components..TLT, IEF and AGG... are slowly migrating to the left of the matrix and stronger ranking so the current balance in the top3 looks like a safe bet.
