iM Update – January 25, 2019

Market Signals Summary:

The MAC-US model is in cash after signaling a sell on 11/26/2018, and the iM-Low Frequency Timer is back in the markets since 1/22/2019. The “3-mo Hi-Lo Index of the S&P500” generated a sell signal on 10/17/2018 and is in cash. The monthly updated S&P500 Coppock indicator is also invested. The MAC-AU has signaled a sell on 11/20/2018. 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 is flattening and signaled buy FLAT end November 2018. The gold Coppock model is invested in gold, however the silver model is in cash since early August 2018. The iM-Gold Timer sold gold on 12/31/2018

The monthly iM-GT-Timer, which is based on Google trends, has switched to cash on November 1, 2018.

 

Stock-markets:

The MAC-US model  is in cash after it generated a sell signal on November 26, 2018. The buy-spread (green graph) is above last week’s level needs to rise above zero to signal a buy.

 

 

The 3-mo Hi-Lo Index of the S&P500 is near last week’s level at -8.46% (last week -9.28%), generated the sell signal on 10/17/2018 and is in cash.

 

 

 

The MAC-AU model is in cash after it generated a sell signal on November 20, 2018. The buy-spread (green graph) is above last week’s level needs to rise above zero to signal a buy. It may generate a buy signal within the next two weeks.

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

 

Recession:

Figure 3 shows the COMP down 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.

 

 

Figure 3.1 shows the recession indicator iM-BCIg above last week’s level. An imminent recession is not signaled .

Please also refer to the BCI page

 

 

The Forward Rate Ratio between the 2-year and 10-year U.S. Treasury yields (FRR2-10) is at last week’s level and is not signaling a recession. The FRR2-10 general trend is downwards.

A description of this indicator can be found here.

 

The iM-Low Frequency Timer is back in the markets since 1/22/2019.

A description of this indicator can be found here.