Signifying short-term market weakness, the TrendFlex Classic I and Allegiance I signals move to cash at the Monday, 5/2 opening price of the S&P 500. The TrendFlex Classic and Allegiance II signals remain unchanged for the week; these signals tend to have a longer-term perspective based on developments in the credit markets.
Performance is through market close on 4/29/16.
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 1||Uptrend; to Cash 5/2||3/2/16||+4.5%||+4.5%||1.900|
|TrendFlex Allegiance 1||Uptrend; to Cash 5/2||3/31/16||+0.1%||+0.1%||1.875|
|S&P 500 timing signals based on credit risk premiums (corporate vs.Treasury debt).|
|TrendFlex Classic II||Uptrend||3/1/16||+6.6%||+6.6%|
|TrendFlex Allegiance II||Uptrend||3/14/16||+2.3%||+2.3%|
The TrendFlex Score decreased from 1.52 to 1.50 and remains below its three-week moving average. As still evident in the chart below, this level may indicate a shift in equities to a downtrend. We would not be buyers in this market at present, and have added short positions in e-Mini S&P 500 futures to hedge a long portfolio.
|Set Stops on Longs|
|Short Overbought Equities|
|Add to Longs|
|Hedge or Reduce Shorts|
|Long Futures and Options|
*Red highlighted items are recommended strategies
Click here for the cumulative returns and trade history for the Baseline Analytics TrendFlex systems since their initial trades.