etfmsolutions: COMMODITIES Update...9.22.13

Tuesday, October 22, 2013

COMMODITIES Update...9.22.13

The Commodities model has been in CASH since early September per the P6 stop after a tremendous run in August that produced a 10% + return. While other markets have been enjoying new highs and strong momentum the commodities have been lagging.

That may be about to change as the P6 has now turned upslope and the equity curve has turned positive.
Note on the 2 year comparison chart with SPY that commodities and SPY often move contrary to one another for weeks at a time.

Note also the position of the TrendX . Do we have a setup that will repeat the August run-up?
The only caveat is that the current leader is IYR...real estate...which is not really a commodity in the classic sense...so we may want to scale down exposure to this model until we get a stronger confirmation.

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

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