iM Update* – May 16, 2014

Bond-market:

Fig4 bvr 5-16The BVR-model avoids high beta bonds (long-bonds) and also intermediate duration bonds. The Bond Value Ratio is shown in Fig 4. The BVR is near last week’s level. According to the model, only when BVR turns upward after having been lower than the lower offset-line should one consider long bonds again.

The Yield Curve:

Fig5 yld 5-16The yield curve model shows the generally steepening trend of the 10-year and 2-year Treasuries yield spread. Figure 5 charts (i10 – i2). The general trend is up, as one can see, although the yield curve has flattened recently. FLAT and STPP are ETNs. STPP profits from a steepening yield curve and FLAT increases in value when the yield curve flattens. This model confirms the direction of the BVR.

 

Gold:

Fig6 gld 5-16The modified Coppock Gold indicator shown in Fig 6. This model has been out of Gold since Nov-26-2012 but is now invested

This indicator is described in Is it Time to Buy Gold Again? – Wait for the buy signal …….

 

Silver:

Fig7 slv 5-16The modified Coppock Silver indicator shown in Fig 7 and is currently invested.

This indicator is described in Silver – Better Than Gold: A Modified Coppock Indicator for Silver.

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