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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||+3.5%||+3.5%|
|TrendFlex Allegiance CR||Long||4/13/16||+20.8%||+20.8|
The TrendFlex Score decreased from 1.42 to 1.34 and remains below its three-week moving average, a bullish development. The most recent low of 1.22 preceded a 50-point decline in the S&P500, suggesting the potential for a short-term setback from recent highs..
TrendFlex Trend Following Signals (TF)
The TrendFlex Classic TF and Allegiance signals remain in Uptrend.
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||+14.0%||+14.0%||1.20|
|TrendFlex Allegiance TF||Uptrend||5/31/16||+16.1%||+16.1%||1.00|
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. The VIX reading is nearing an extreme reading (see chart below). Put/Call remains neutral but is also nearing an extreme reading.
The Portfolio Strategies chart remains bullish, with an edge toward risk-aversion.
|Set Stops on Longs|
|Short Overbought Equities|
|Add to Longs|
|Hedge or Reduce Shorts|
|Long Futures and Options|
*Red highlighted items are recommended strategies