etfmsolutions: M6 Market Outlooks...10.18.16

Tuesday, October 18, 2016

M6 Market Outlooks...10.18.16

Reviewing the current M6 momentum versus mean reversion modes leaves us in the same position as last week...virtually no edge in following a single mode. As with last week, the mean reversion model does display a better short term equity curve.
Running both modes creates a risk profile that looks a lot like a divergent pairs trading setup and surprise, both models made money today as both TLT and XLU were green..
We'll continue to post these profiles on a weekly basis as I move towards a more structured graphical format for Newsletter posts in 2017.
Intel and IBM disappointed after hours so expect weakness in the Qs tomorrow.

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