We always expect paradigm shifts which is why we only look at 6 month metrics and the crossover of the equity curve below the RSQ linear regression line about 1/30/17 was a clear sign that no signals should be vested from that point forward. Regarding the pairs signals we are in a standby mode until the equity curve does demonstrate positive slope (moderate risk) and then crossing above the RSQ line (low risk). Both the VDX charts look grim and that big hit on March 2 for silver was the marker for the $ 2 billion sell order that started the day.
Pairs chart is small so click once to enlarge.
