etfmsolutions: TAQK and LM updates...10.31.12

Wednesday, October 31, 2012

TAQK and LM updates...10.31.12

Here are the weekly updates for the fixed allocation models. The RM versions for both models remain in cash since Oct 5th, accounting for their 0 % returns short range. In both models the RM version is currently outpacing the active Mosaic models and in the case of the LM model the RM version is actually ahead of SPY by 1% for the year.The cross of the M14 and M30 did a great job of forecasting further declines and we're looking for a new cross up before the RM versions take positions.

Today is our designated rebalance day for the month. Using the Rebalance Calculator emailed to subscribers last month just enter today's prices and your test model account value to calculate the correct position sizing for each ETF.

The momentum rankings are very bearish currently...SH is the inverse of SPY...which is as bearish as out model will allow. This could all change quickly if the typical end of month buying kicks in, but as of this post (8:00 AM PST) the markets are in a slow grind down with Apple losing over 2 %. Gold is strong and holding...usually a bad sign for the equity markets. Volume is paper thin so expect higher volatility than normal and reduced reliability of the technicals.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

NOTE: Posted risk exposure indicators, signals and metrics apply to Mosaic models only. They are not directly correlated with price movement in the major market indices and can not be used to forecast directional changes in those instruments.
Each Mosaic model is a unique blend of risk factors and must be treated accordingly.

TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

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Investing is risky and past performance, whether actual or tested, is no guarantee of future results.
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