The model score today is -39, a new low for the move.  This means that the market is deteriorating internally on all down moves while only improving very slightly on any rally.  Not encouraging as yet.

 

Unless price stabilizes at much higher levels, the asset spreads utilized in the model suggest this will be a temporary reprieve, with much worse to come eventually.

 

Owners of SNPS, DHR, ABMD, AVGO, PYPL, ALB, APH & DVA should examine whether it is worth holding these stocks, as the position is rapidly deteriorating in those names.

 

Our asset allocation is today still 100% TLT and 0% SPY.  The monthly model gave us the sell signal at October month end.  All 3 models are now aligned in risk off.  The fact that the model keeps on being negative into price rallies is a potent tell of what might be coming soon.  I would advise extreme caution.

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