Quantitative Strategy – Automated Portfolio Update
|ASSET CLASS||TYPE||LONG or SHORT||DAILY %||MTD %||QTD %||YTD%|
Daily Trade Signals
Very interesting action today as technology, consumer staples sectors were dumped, as banks and financials continue their relentless run up. As a result many stocks are overbought/oversold after the 2-day move and our signal is not inclined to chase the move. There will always be a dip buy opportunity to rotate into outperformers in the LT. Also many emerging markets suffered massive drop on strength of US dollar. We picked up quite a few today including Mexico, which plunged back to YTD lows, Brazil, South Africa and Indonesia. We believe there should be a quick snapback bounce after such a one sided 2 day move. Similarly we went short the IWM which we believe in the ST will pullback due to overstretched conditions like a few other sectors, though it is clear the longer-term technical picture is turning more positive.
Chart in Focus
EWW – Short-Term Long
Entry Point(s): 44.2
Comments: Mexico ETF was pounded back to YTD low, an astonishing 17% move in 2 days. Our signal believes an oversold bounce is due back above lower Bollinger band in the weekly chart.
HBAN – Short-Term Short
Entry Point(s): 11.6
Comments: More extremely overbought regional banks that our signal decided to pull triggers on including HBAN, which is retesting LT broken uptrend and 2015 highs..