iM Update – November 3, 2017

Market Signals Summary:          

The MAC-US model is invested.  Also, the “3-mo Hi-Lo Index of the S&P500” generated a buy signal on 10/3/2017 and is invested in the markets. The monthly updated S&P500 Coppock indicator is also invested.  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, and the  yield curve seems to be flattening. Both the gold and silver Coppock models are invested, and the iM-Gold Timer is in gold since 7/10/2017.



Fig-2.-11-3-2017The MAC-US model generated a buy-signal 4/5/2016 and thus is invested in the stock-markets. The sell-spread (red graph) is above last week’s level and has to fall below zero to signal a sell.



Fig-2.2-11-3-2017The 3-mo Hi-Lo Index of the S&P500  is above last week’s level  at 12.04% (last week 11.44%) and is out of the market since 8/22/2017.




Fig-2.1-11-3-2017The MAC-AU model is invested in the markets after it generated a buy signal on March 21, 2016. The sell-spread is above last week’s level and has to fall below zero to signal a sell.

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



Fig-3.-11-3-2017Figure 3 shows the COMP near 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-3.1-11-3-2017Figure 3.1 shows the recession indicator iM-BCIg which is up from last week’s level. An imminent recession is not signaled .

Please also refer to the BCI page



Fig-3.2-11-3-2017The Forward Rate Ratio between the 2-year and 10-year U.S. Treasury yields (FRR2-10) is below last week’s level and far away from signalling a recession.  The FRR2-10 is trending downwards.

A description of this indicator can be found here.

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