iM Update – April 29, 2016

Market Signals Summary:

The MAC-US model  is invested.  Also, both the “3-mo Hi-Lo Index of the S&P500” and the “VMNFX vs. SPY Timer” are invested in the markets.   The MAC-AU is also invested.  The recession indicators COMP and iM-BCIg do not signal a recession.  The bond market model avoids high beta (long) bonds, the trend of the yield spread is indeterminate. The gold and the silver model are invested.

 

Stock-markets:

Fig-2.-4-29-2016The MAC-US model generated a buy-signal 4/5/2016 and thus is invested in the stock-markets. The sell-spread (red graph) is up from last week’s level and has to fall below zero to signal a sell.

 

 

Fig-2.2-4-29-2016The 3-mo Hi-Lo Index of the S&P500 continues to rise and is invested in the market, it generated a buy signal  on 3/23/2016.  

 

 

Fig-2.3-4-29-2016The VMNFX vs. SPY Timer  signaled an entry into the stock  markets on 3/28/2016. For this model to exit the markets the indicator has to fall below the 2% trigger line and then rise above it.

 

 

Fig-2.1-4-29-2016The MAC-AU model is invested in the markets after it generated a buy signal on March 21, 2016. The sell-spread, still negative, is higher than last week’s level, but first has to become positive before it can signal a sell.

This model and its application is described in MAC-Australia: A Moving Average Crossover System for Superannuation Asset Allocations.

 

Recession:

Fig-3.-4-29-2016Figure 3 shows the COMP  is up from  last week’s level. No recession is indicated.    COMP can be used for stock market exit timing as discussed in this article The Use of Recession Indicators in Stock Market Timing.

 

 

Fig-3.1-4-29-2016Figure 3.1 shows the recession indicator iM-BCIg also up from last week’s level. An imminent recession is not signaled .

Please also refer to the BCI page

 

 

Fig-3.2-4-29-2016The Forward Rate Ratio between the 2-year and 10-year U.S. Treasury yields (FRR2-10) is near last week’s level and far away from signalling a recession.

A description of this indicator can be found here.

Posted in pmp free update

Leave a Reply

With reference to Section 202(a)(11)(D) of the Investment Advisers Act: We are Engineers and not Investment Advisers, read more ...
By the mere act of reading this page and navigating this site you acknowledge, agree to, and abide by the Terms of Use / Disclaimer
Share This