iM Update* – March 6, 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.  The BVR is at a new record high. 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 weeks level. 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 is invested in gold since 1/21/2020.

 

 

 

Silver:

The modified Coppock Silver indicator shown in Fig 7. This model generated a sell signal early August  2018 and is in cash.

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