OTM Market Update – Following the Model Part 2

The technical model is now 2.3% ahead of the market over the past 12 months, and ahead of the market at the 2 and 3 year periods as well.  Recommended Equity allocation is around 8%.

The inverse S&P 500 ETF (DOG) is approaching a BUY point, as it is BUY in short and intermediate periods but not in the long period, at least yet.  If you care to try to profit on market weakness you can use an inverse ETF.  I will wait until I get a long term signal before buying. read more

OTM Market Update – Consolidation

The asset/bond ratios of 52%/27% has not changed, but the market is in a consolidation, sideways phase.  Now would not be the time to put a lot of new money in this market.  Small caps continue bruised, midcaps a bit less so, and large caps largely sideways.  This is the beginning of a classic breakdown but it has not proceeded much further in the past few weeks. read more