T2, VTV applications,etc....12.11.12

Most of you now have the T2 software to play with and create your own model portfolios so I'll limit my previous focus on T2 for a while.  There are no new Alerts and the markets continue in conflict with Monday demonstrating a somewhat bizarre returns as QQQ, TLT and GLD were all green and XIV was red.  Today it's Apple that's driving the Qs and the materials sector is flying.
T2's selection of XLP and IWM since 11/29 has worked out well but the model still remains in a stopped mode per the short term RSQ and P6.

The VTV model continues to favor XIV (the VIX inverse=bullish) ranking and after today's Qs action we may see the rankings fall into the ideal alignment with Qs in #2 slot and SH in #5.  Until then we need to be sure that today's early rally is not just a short covering event.

Below is an example of one of many peripheral ways that the VTV Assist program (bundled with the VTV main program) can be used. While the VTV program is focused on capturing short term gains it can also be used to build long term portfolios with less than 6 components.  In this case the model holds all 5 ETFs in equal dollar amounts...and holds and holds and holds.  We just need to rebalance every month to make sure there are equal dollar allotments  in each ETF.  The results...we slightly beat SPY but the drawdown is miniscule. The RSQ of .98 tells the whole story. We actually don't even need to look at the Momentum rankings.