When in doubt, get out......that was a cardinal capital preservation rule I learned from Alexander Elder many years ago and it's saved me a lot of misery over time. His 1993 book
Trading for a Living is a classic and focuses on the need to treat trading as a business, not a hobby. Well worth a read if you get the chance IMHO. I've read and reread my copy over 7 times in the last 10 years. There's always some nugget of trading wisdom that I discover with each perusal.
Meanwhile weak numbers in the GDP and durable goods reports coupled with suspicious remarks from FED President Bullard that interest rates might be going up send a red shiver through the markets although the VIX ended the day basically unchanged.
Below is an update of the weekly rebalanced T2 (top2) Commodity model....just something to keep in mind as an alternate investment strategy to a SPY sector based or SPY beta based (M3) format.
