The model score today improved 3 points to –22, an inconsequential move in the spreads alongside the rather uneventful price move in the SP500.  Either we turn back from here or at 2861 or we are going to embark on a long leg higher, through ATHs and into mid 3,000s. The model is saying that all that is rallying are defensive sectors which are yield sensitive and that risk spreads are deteriorating.  Better in that case to stick with yields themselves.

Owners of NEM, PHM, DG, SWK, AIZ, GM and MAT should check to see if this security is still needed in their portfolio, as the picture is rapidly deteriorating in those names.

We are still in full Risk Off, invested in TLT.

We are very near to a big impulsion moment, either up or down.  Maximum protection of portfolio time via options.

EN
ES EN