First, a correction. Yesterday's link to the TIPS article was authored by Ron Brown of Eqis. Today's link about the
state of the economy does refers to recent statements by Jeffrey Gundlach of DoubleLine Capital.
Here's a look at what the classic setup in the VTV model is showing:
I've segmented the actual software display screen to show the results...otherwise they're impossible to read on this size screen. VTV is still bullish and short term the results match XIV. This could chnage quickly so, as always, stops need to be followed. The QQQ/SH trade (Long QQQ) has not been attractive for the entire course of the lookback period. The Qs have clearly been lagging largely on the heels of AAPL weakness. As earnings season continues we're likely to have either a trapdoor crash or a rise to new highs...and there's multiple arguments for each scenario .
On a different note....if equities do become unattractive here's an abbreviated all bond model in T2 that looks promising. I could have added JNK (junk bonds) and a couple other ETFs but I'm trying to do double duty here and look to optimize candidates for the stlil pending AB model. The results may be a bit surprising considering there are no equity ETFs in the mix.
The markets are closed Monday and Intel reports tonight so we may see some action Friday after a series of narrow range range.
