The TrendFlex Classic and Allegiance scores improved on the week, and both maintain their uptrend signals. As the short-term market bounce approaches the top of its recent trading range, we are becoming more cautious. Not sure what catalyst can propel the indices to new highs as we continue through a traditionally weak season.
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The TrendFlex Score increased from 2.13 to 2.20 and remains above its three-week moving average, a bearish development. The market bounced at the recent score high of 2.42 as reported in our intra-week update, which turned out to be a profitable short term bullish trade. The weekly TrendFlex Score has languished over 2.0 and does not display any strong indication of a strong uptrend resuming.
The Portfolio Options Table remains bullish but increasingly cautious. We recommend keeping stops in place and raising income with covered call writing on profitable holdings. We are cautious toward adding any long positions at this time.
Click here for the cumulative returns and trade history for the Baseline Analytics TrendFlex systems since their initial trades.