The model score was unchanged today at 11. This means that the market is not making any progress under the surface but is not deteriorating either, even though it closed slightly lower. The market is digesting its losses. This is ultimately bearish in the short term.
I want to remind you that our positioning longs in SPY are now trading longs and will be sold should the market close over 3% lower than the “purchase price”, 5% higher, or, in any case, after 15 days of purchase, if neither of those two conditions have been met. We will, at some stage within the next 15 days, be in a “risk off” position, most likely.
Owners of CBOE, AFL, AME, ANTM, APA, ETFC, KORS, LNT, OXY, ATVI, CI, NTRS, REGN, SPG, BAX, CTAS, CTXS and GRMN should examine whether it is worth holding these stocks, as the situation is rapidly deteriorating in those names. I advise all owners of concentrated single name shares to check their current performance and see if risk needs to be adjusted.
Our asset allocation is still unchanged from yesterday. All changes will be announced on the day they are made.