Riskdial has improved from -40 to -28. As I advised in December, when the spreads move so far away from their averages, it takes a lot to improve the score to much more positive than +10 or +20 on a daily basis.  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.  As this model sells at the close of day 3, which was today, at today’s close we are back in Risk Off again, waiting for new signals. In no way does this mean that we have seen the top of this snapback in equities. It just means that we stick to our tried and tested methodology to outperform long term.

A stock to look at today is: CERN (buy on all indicated pullbacks).

We are in Monthly, Weekly and Daily Risk Off, having exited the Counter Trend signal.