iM Update* – August 21, 2020

Bond-market:

The BVR-model avoids high beta bonds (long-bonds) and also intermediate duration bonds.

The Bond Value Ratio is shown in Fig 4 and is above last week’s value.  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:

The yield curve model indicates the trend of the 10-year and 2-year Treasuries yield spread. Figure 5 charts (i10 – i2) shows that the yield curve is above last week’s level and it signaled a buy FLAT.  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:

The modified Coppock Gold indicator shown in Fig 6. This model generated a new buy signal end March 2019 and is invested in gold.

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

 

 

The iM GOLD-TIMER Rev-1 i generated a buy signal on August 17 and is  invested in Gold.

 

 

 

Silver:

The modified Coppock Silver indicator shown in Fig 7. A week after exiting silver,  iM-coppock model generated a buy signal begin August 2020 and is again invested in silver.

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