The model score today is –23, which is no material difference to yesterday’s, despite the initial rally and subsequent huge sell off. This means that the market is still deteriorating internally.
We have to admit that all Counter-trend bounce signals have failed in timing, stick to our discipline and sell 80% of our equity position in SPY for TLT. Although we fundamentally think this is a very bad place to do it, we stick to our discipline which has been so profitable over the years. That is what a disciplined person does, despite all reservations.
Owners of BA, HRS, CDNS & TTWO should examine whether it is worth holding these stocks, as the position is rapidly deteriorating in those names.
Our asset allocation is today 80% in TLT and 20% in SPY. The monthly model will probably give us the sell signal at month end, but we never anticipate.