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The TrendFlex Classic CR signal shifted to a BUY at today's close.
TrendFlex Credit Risk Premium Signals (CR)
TrendFlex Classic CR signal remains at a Sell. The longer-term Allegiance signal remains Long.
S&P 500 Return
|S&P 500 timing signals based on credit risk (CR) premiums (corporate vs.Treasury debt).|
|TrendFlex Classic CR||Short||3/09/17||+0.9%||-0.9%|
|TrendFlex Allegiance CR||Long||4/13/16||+16.1%||+16.1%|
The TrendFlex Score remained unchanged at 1.55, sitting above its three-week moving average, a bearish development.
TrendFlex rlowing Signals (TF)
The TrendFlex Classic TF and Allegiance signals remain in Uptrend. The Classic signal is nearing a neutral score.
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||+9.6%||+9.6%||1.70|
|TrendFlex Allegiance TF||Uptrend||5/31/16||+11.6%||+11.6%||1.25|
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. This week, the LQD indicator moved from an extreme to a bearish position above its moving average (see bottom portion of chart below).
VIX and Put/Call bolted sharply above their respective moving averages, a sign that the short term weakness in equities may reverse. However, they are not at extreme readings which would presage a strong rally.
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