System Notes: The extreme (black swan-ish) equity meltdown proved a challenge for the market as well as the models. On the plus side, I took the opportunity to make some small enhancements to (hopefully) give the CTM models the edge next time. I will cease posting the equity charts with this post as the next rotation will feature the US dollar for September. To have the last equity signal for August to be a buy seems comforting.
Featured market rotation: Equities for August, US Dollar for September and Bonds for October. Equities (again) for November. Gold is non-rotational.
Model Portfolios: Gold = Buy 8/25, S&P 500= Buy 8/28, VIX=Sell 8/28, USD = Buy 8/20
Nonlinear Trading Themes:
- Gold: The yellow metal advanced against a backdrop of extreme equity volatility. Recent price action suggests a stair-step in support. 106 mid-month and 107 at the end. The model gold portfolio remains long.
- S&P 500 (August Featured Market): Largecaps signaled a buy today as the models are projecting a mostly complete return to pre-meltdown levels. Next week is a holiday shortened period. The S&P 500 portfolio is now long.
- $VIX (S&P volatility) (August Featured Market): Predictably, as this market tends to be inverse the S&P 500, the VIX portfolio is now short.
- US Dollar (Sept Featured Market): The US dollar index model bought on weakness of the green back but the dollar went lower. Now the US currency is about at the sme level. I did not get sell readings so I am looking for higher prices. US Dollar portfolio is still bullish.
Note: Technical analysis comments are based on interpretations of non-linear trading models, combined with chart price action.
- Bond Trading Signals. I am offering a similar Mummy process for Treasuries. See the “Bond Trading Signals” tab for more info. Currently available.
- Currency Trading Signals. I am now offering a similar Mummy process for currencies. This service will involve two signal paths, one on the US dollar and the other on a user selected second currency (1+1).The fee will be the same as the Bond trading signals. Currently available.
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GH Garrett – Veteran Commodity Watcher for ConquertheMummy.com © 2015, “Nonlinear signals that matter in gold trading.”