Friday, June 24, 2011

Stock System Indicators: Caution

Our intermediate stock market indicators have turned neutral after a bullish reading -- last signaled on May 11, 2011 when the S&P stood at 1338.  At the time of this signal, the S&P stands at 1282.  The market bounced back yesterday after being much lower for much of the day (and after having some rough periods).  The overbought system "took the opportunity" to go neutral.

Our long-term stock market indicators remain bullish -- although they are "medium" bullish and are not flashing the "strongly bullish" signal that they have had for a while.  

Saturday, June 4, 2011

Introducing the ZETF (z-Trader ETF)

As our readers know, we specialize in quantitative investment strategies and alternative assets. In addition, we are specialists in asset allocation and Modern Portfolio Theory. For investors who are interested in a well-diversified portfolio, please check out the Z-Trader ETF (or ZETF).

The ZETF is tracked on the site below. The ZETF offers the following benefits:
  • Offers broad diversification to stocks, bonds, and alternative assets.
  • Uses concepts of Modern Portfolio Theory to take advantage of one of the few "free lunches" -- diversification.
  • Also applies several of our quantitative research to add value based on longer-term technical market action, valuations, and other quant methods.
  • Focuses on the lowest-fee-funds and/or funds that offer good diversification benefits.
  • Will re-balance infrequently, triggering lower commissions and fewer tax events.
  • Investable; you can use your brokerage account and auto-trade the ZETF so you can invest in the broadly-diversified ZETF portfolio, forget about it, and "sleep well at night."

Thursday, June 2, 2011

Recap of May Financial Markets 6/2/11

May was volatile for many asset classes – and the futures & commodities markets were no exception. Some notes on May’s market action:

· Crude Oil: after hitting recent highs to end April ($115/barrel on the July contract), crude oil declined the first 5 days of May (including -9% in a single day) – as it lost -20% (to $95), before consolidating at $100/barrel.

· Gold: similar to crude, Gold hit highs at the end of April near 1580, then collapsed all the way to 1480 – before settling the month at 1540.

· Equity Markets: global stock markets were down in May, with the S&P ending down -1.1% (rallying from a low of -3.5% at mid-month). European markets underperformed due to debt worries.

· Currencies: the US dollar has shown strength as the markets try to sort out economic growth, debt problems, and other key forex drivers.

· Bonds: the fixed income market was one of the better markets for trading programs during May, as the “flight to safety” caused bonds to rise.