Everyone has a trading plan until they go into drawdown. The Dual Momentum Rotation Strategies are off to a great start here in 2024. This is the easy part. Don’t forget that RISK is always lurking in the equity markets and this is something we must always take into account. There is no reward without risk.
This report updates the Trend and Momentum Strategy that trades 74 stock-based ETFs. This strategy went through a rough patch from January 2022 to May 2023, but rebounded the last two months
Today’s report will put the Zweig Breadth Thrust indicators for the various indexes to the test. My default breadth index is the S&P 1500 because it covers all bases and represents a broad swath of the US stock market. We can also generate ZBT signals using
Breadth indicators are also referred to as market internals. As the “vital signs” for an index or sector, breadth indicators reflect aggregate performance for the individual components. As such, breadth indicators can provide leading signals by strengthening before a bottom or weakening ahead of a top. After all, the whole is only as good as the sum of the parts
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Today’s report features the Zweig Breadth Thrust, which was developed by the late, and great, Marty Zweig. We will show how it works and look at some recent signals. Despite a long history, the indicator is missing something and we will propose a modern day alternative.
The S&P 500 is battling the 200-day SMA with four crosses over the last eleven days. We are also seeing a rise in volatility as this market benchmark plunged 5.86% in nine days (18-27 October) and then surged 5.85% the last five days. With such conditions, it is a good time to step back and look for ways to filter the noise.
The Composite Breadth Model (CBM) turned negative on Monday (-1) and the weight of the evidence is now bearish for stocks. This development means risk in stocks is above average. Strategies that trade stocks and stock-based ETFs perform poorly when risk is above average
This article will update the mean-reversion strategy that trades stocks in the Russell 1000. Mean-reversion setups and trades come in clusters, such as now. This means we often get periods with
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This article introduces a mean-reversion strategy to trade Russell 1000 stocks. I will cover some of the key concepts behind the strategy and provide a sneak-peak at the equity curve. In contrast to the rotation strategy trading
Today’s report will test the Trend Composite & Normalized ROC Strategy on stocks. We will first review the testing parameters and signals for the strategy. I will then test on stocks in the S&P 500 and three other indexes. The overall returns are positive, but the
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Today’s article will show how Normalized ROC performs in a rotational trading strategy. This rotational strategy builds on the prior strategy by using the same indicators (Trend Composite, eSlope, Normalized ROC).
ETF-Strategy: Trend Rotation with eSlope and Normalized ROC (Premium) Read More »
This articles covers the indicators and signals for a trend-momentum strategy to trade stock-based ETFs. The Composite Breadth Model defines market conditions. The Trend Composite and eSlope120 are used for trend identification, and Normalized ROC delivers the momentum rank. We show performance metrics for this strategy and provide a signal table.
We are making progress. After a big hiccup on Thursday, I reworked the strategy and will cover the basics in this article. Here are some of the changes. First, the strategy trades stocks in the Russell 1000 to capture more beta. Second, I tightened the volatility filter by requiring the standard deviation to be below 50%. Third, I added price,
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Today’s report will dive into the market filter, which is used to define bull and bear markets. Market filters are an important part of trend-following and momentum strategies that trade stocks and stock-based ETFs. The Composite Breadth Model has not worked well over the last 15 months, but this is a relatively short timeframe in the grand scheme
This report updates the strategy that trades the 50 All-Weather ETFs using the Trend Composite for trend status and StochClose for price rank. I am updating this strategy because the Composite Breadth Model turned
ETF-Strategy: Trend & StochClose Strategy for All Weather ETFs – UPDATES (Premium) Read More »
The weight of the evidence is bearish for stocks. The Composite Breadth Model turned negative on Monday, yield spreads widened significantly over the past week and SPY broke wedge support. Risk for stocks and stock-based ETFs is above average right
Recent events in the banking world jolted stocks. This jolt was enough to push the Composite Breadth Model into negative territory and widen yield spreads. The Regional Bank
Stocks fell sharply on Tuesday as the market reacted to testimony from Fed Chairman Powell. The Dollar surged and gold fell, but the 20+ Yr Treasury Bond ETF actually advanced on the day. Based on
The S&P 500 SPDR (SPY) fell back to its 200-day SMA in February and then surged with a sharp advance the last few days. This advance triggered breakouts in several ETFs that were featured in last week’s report and video. Today’s report will update these charts and set the
This report is an update for the Trend Composite and StochClose Rank Strategy that trades ETFs in the All-Weather List during bull and bear markets. Examining recent performance and signals can
Stocks corrected throughout February and many ETFs are setting up with pullback patterns taking shape. The S&P 500 SPDR (SPY) is testing its 200-day SMA after a pullback the last four weeks. QQQ broke