Riskdial has improved from -51 to -40 only. As I advised in December, when the spreads move so far away from their averages, it takes a lot to improve the score by more than 10 or 20 points in a day. The market has snapped smartly out of the green area in Deviations, as were the odds. Moreover, as advised on Friday, the Counter Trend Model (look at Counter Trend Tab) gave a buy signal for equities, looking for a sizeable bounce. Always look at the data box below the Counter Trend Model to see its rules. This model sells at the close of Day 3, which is tomorrow and therefore at tomorrow’s close we will be back in Risk Off again, waiting for new signals. Why Day 3? Because that has been the average peak close of all the instances when that model has triggered in the past 20 years. Just playing the odds.
A stock to look at today is: IR (buy on all indicated pullbacks).
We are in Monthly, Weekly and Daily Risk Off, but in Countertrend mode and therefore long equities (SPY). As above, the “buy equities” signal ends at tomorrow’s close.