The recently introduced WORLD model has been chugging along with EEM in the top slot for over a week. And the returns have been respectable when used in conjunction with a top 2 sort.
The current P6 signals still look strong but keep in mind that these models tend to give positions a chance to "breath" between trends, so there will be the inevitable drawdowns before a clear trend reversal signal kicks in. The upside to this turtle like momentum signal is that the frequency of trading is lower.
Looking at the EEM chart in a more active technical platform we see evidence that a trend reversal may indeed be developing so our caution flag should be up.
If you believe that the markets do work in cycles then EEM is sitting at a historical overhead resistance level (red line) and the odds favor a possible drop down to longer term support levels (green line).
Just another set of indicators looking at pricing dynamics will help preserve your capital.
