First an update on yesterday’s GLD post: GLD held out in the green most of the day before stumbling mid day and closing down .75% for the day. By way of comparison NEM closed down a whooping 7.36% and GDX closed down 3.14% for the day. After hours all three are up substantially, although still red for the day.
The daily version of the 5 ETF Lazy Man Rotator (SPY, EEM, XLB, QQQQ and TLT) has a new leader . . TLT; the weekly signal is still Long the XLB. We’ve been predicting this rank change for a while now and yesterday’s closing signal turned the focus on TLT. Assuming volatility doesn’t crumble within the next couple days a likley upside target for TLT is around 92.50, not a long way to run. The ETFR Pairs Analysis shows the tight correlation between TLT and SPY and just to muddy the waters and confuse the innocents, the new signal is short the TLT, Long the SPY. Note that the ETFR pairs excursion period is 3 days so things can happen fast with this model. Hey! Nobody ever said trading was easy.
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