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TrendFlex Credit Risk Premium Signals (CR)
TrendFlex Classic CR and Allegiance signals remains Long, as the major indices continue to flirt with new highs.
S&P 500 Return
|S&P 500 timing signals based on credit risk (CR) premiums (corporate vs.Treasury debt).|
|TrendFlex Classic CR||Long||11/08/16||+7.34||+7.4%|
|TrendFlex Allegiance CR||Long||4/13/16||+13.8%||+13.8%|
The TrendFlex Score increased from 1.39 to 1.40 and is slightly above its three-week moving average.
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||7.4%||7.4%||1.20|
|TrendFlex Allegiance TF||Uptrend||5/31/16||9.4%||9.4%||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 VIX and Put/call ratios pushed back to mildly extreme readings.
Although the LQD indicator has narrowed the gap vs. its moving average, it appears to be working on a double-bottom, which could suggest risk to equities in the near future.
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