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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||-1.2%||-1.2%|
|TrendFlex Allegiance CR||Long||4/13/16||+15.3%||+15.3%|
The TrendFlex Score increased to 1.61 and remains slightly above its three-week moving average.
TrendFlex Trend Following Signals (TF)
The TrendFlex Classic TF and Allegiance signals remain in Uptrend. The Classic signal remains near 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||+8.9%||+8.9%||2.10|
|TrendFlex Allegiance TF||Uptrend||5/31/16||+10.9%||+10.9%||1.375|
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 VIX reading hit an extreme (suggesting a potential bounce in equities). The LQD chart shows a bearish shift above its moving average.
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