A sell in bluechips!

Model sell signal date 9/29. TSP = close on the next trading day (Monday, 10/02).

Model notes: Nonlinear models are fading the punch to new September highs in largecap equities. VIX tends to move opposite, so that signal is buying.

Note: The following comments are based on using technical analysis to ‘flesh out’ our nonlinear trading signals. TSP is defined as the closing price following the signal day.

Nonlinear Trading Themes:

  • Neutral Yields ($TNX): Waiting for guidance from the models.
  • Short Trend Stocks (SPY): This category has enjoyed a bump from the euphoria from the Trump election but sometimes even a bull has to give a little back. Nonlinear analysis has the bluechips (i.e. SPY) as overbought and vulnerable at these heights.
  • Buy Trend Equity volatility ($VIX): Volatility, the mercurial (and relatively inverse) cousin of bluechips is now in a positive mode.

 

Premium Research notes:

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Take a minute to peruse the US Equities tab. I posted the S&P 500 trading signals postmortem for the recent March-April time period (approx. as it took about a week to generate a signal at the beginning). Plus 134 Points. Great stuff!

Take a minute to check out the Forex tab on our website. I am posting the recent US Dollar May-June signals. No whipsaws and playing the surprise Brexit vote just right. Great stuff!

Take a minute to take a minute to click on our bond trading tab. Our signals took the profits in the early month while holding the long interest rates position later. It never sold rates, hinting at higher rates to come. The TBT went higher outside our test window. A nice tip-off for the future!

Check out the energy tab. We tracked crude during the run up to the US presidential election. There was plenty negativity with a surprise ending. See how nonlinear analysis walked us through it!

GH Garrett – Chief Market Analyst for ConquertheMummy.com  © 2015-2017, “Nonlinear trading signals that matter in VIX trading.”