The model score today is -79, the worst score since the correction started. This means that the market is collapsing internally. Nothing has changed in the spreads, despite the massive intra-day rally. It is still correct to avoid risk assets.
Unless the market now stabilizes at higher levels, the asset spreads utilized in the model suggest this will be a temporary reprieve, with much worse to come eventually.
Owners of CAN & GRMN should examine whether it is worth holding these stocks, as the position is rapidly deteriorating in those names.
Our asset allocation is today still 100% TLT and 0% SPY. The monthly model gave us the sell signal at October month end. All 3 models are now aligned in risk off. The fact that the model keeps on being negative into price rallies is a potent tell of what might be ahead. I would still advise extreme caution and lightening up of individual names which are under-performing the market into rallies.