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TrendFlex Credit Risk Premium Signals (CR)
There was no change to the TrendFlex Classic and Allegiance signals this week.
S&P 500 Return
|S&P 500 timing signals based on credit risk (CR) premiums (corporate vs.Treasury debt).|
|TrendFlex Classic CR||Long||3/28/17||-0.3%||-0.3%|
|TrendFlex Allegiance CR||Long||4/13/16||+16.3%||+16.3%|
The TrendFlex Score decreased from 1.61 to 1.57 and closed below its three-week moving average, a bullish development.
TrendFlex Trend Following Signals (TF)
The TrendFlex Classic TF and Allegiance signals remain in Uptrend. Modest improvements in the scores this week suggest a potential breakout from the recent trading range.
S&P 500 Return
S&P 500 timing signals based on a weighted score of US Market technical indicators. Classic (short-term) and Allegiance (intermediate to long term). Score: Bullish = 1.0-1.75; Neutral = 1.75-2.25; Bearish = 2.25-3.0
|TrendFlex Classic TF||Uptrend||11/8/16||+9.8%||+9.8%||1.900|
|TrendFlex Allegiance TF||Uptrend||5/31/16||+11.8%||+11.8%||1.125|
Baseline Analytics Extremes
Baseline Analytics Extremes highlights four key TrendFlex Indicators and their level of extreme readings. The key indicators include the following:
- CBOE VIX and Put/Call Ratio
- TED Spread
- LQD vs. S&P 500 GAP reading
When one or more of these indicators has reached an extreme reading, chart and commentary will follow. There are no extremes this week, as all indicators are at neutral readings.
The Portfolio Strategies chart remains bullish, with an edge toward risk-aversion. A short position in an S&P 500 e-mini future contract, for example, is one strategy to help hedge long positions.
|Set Stops on Longs|
|Short Overbought Equities|
|Add to Longs|
|Hedge or Reduce Shorts|
|Long Futures and Options|
*Red highlighted items are recommended strategies