All 10 Models Say Sell

The models all went with a sell signal.  Based on previous experience this may be a bit premature but it does indicate that the market is presently overbought.

Sell Today: Biotechnology(BIB) Energy(ERX) Finance(FAS) Mid Caps(MIDU) SP 500(SPXL) Technology(TECL) Small Caps(TNA) Natural Gas(UGAZ) Gold(UGLD) Russell 2000(URTY)

So in the paper account I will be selling.
Score - Bulls: 0   Bears: 10
----   T H E   B U L L S   ----

----   T H E  B E A R S   ----

• Biotechnology as represented by BIB
• Energy as represented by ERX
• Finance as represented by FAS
• Mid Caps as represented by MIDU
• SP 500 as represented by SPXL
• Technology as represented by TECL
• Small Caps as represented by TNA
• Natural Gas as represented by UGAZ
• Gold as represented by UGLD
• Russell 2000 as represented by URTY

5 New Buys - Belatedly Add The Rest To The Buy List While You're At It.

Buy Today: Finance(FAS) Mid Caps(MIDU) SP 500(SPXL) Small Caps(TNA) Russell 2000(URTY)

So in the paper account I will be buying all 10.

The other 5 models went bullish last Friday.


Score - Bulls: 10   Bears: 0
----   T H E   B U L L S   ----

• Biotechnology as represented by BIB
• Energy as represented by ERX
• Finance as represented by FAS
• Mid Caps as represented by MIDU
• SP 500 as represented by SPXL
• Technology as represented by TECL
• Small Caps as represented by TNA
• Natural Gas as represented by UGAZ
• Gold as represented by UGLD
• Russell 2000 as represented by URTY

----   T H E  B E A R S   ----

What Happens When A Correlated Symbol Is Dropped

This morning when running the models I noticed one symbol "LSI" was not returning current historical data from Yahoo Quotes.  It turns out that  LSI was purchased by AVGO and the LSI symbol is no longer active.

My first thought that was since LSI was one of 20 symbols that a model may be suing and that it was no longer available the other 19 would "cover" for the missing data.  But that wasn't the case as the buy/sell indicators and the date of the occurance change.  To make matters worse it turns out LSI was used in all 10 models.

So I changed LSI with AVGO and the ran the models.  The run results were completely different when compared to when LSI was not used - again I assumed one symbol couldn't have had that much affect on the over model but it does.

So I looked for a symbol whose stock price correlated the closest with LSI and it was FDO.  FDO is already used in only one model BIBs.  Running the models with FDO produced results similar to yesterday's so I will not be rebuilding the models from scratch.

The Remaing Two Model BioTech and Energy Are Now In The Sell Group.

I will sell BioTech (BIB) and Energy (ERX) today.

All models are now bearish....

A Bunch of Models Say Sell

Sell Today: Finance(FAS) Technology(TECL) Small Caps(TNA) Natural Gas(UGAZ) Gold(UGLD) Russell 2000(URTY)

So in the paper account I will be selling.


----   T H E   B U L L S   ----

• Biotechnology as represented by BIB
• Energy as represented by ERX
• SP 500 as represented by SPXL

----   T H E  B E A R S   ----

• Finance as represented by FAS
• Mid Caps as represented by MIDU
• Technology as represented by TECL
• Small Caps as represented by TNA
• Natural Gas as represented by UGAZ
• Gold as represented by UGLD
• Russell 2000 as represented by URTY

BioTech, Finance, and Energy - Models Say Buy,

Buy Today: Biotechnology(BIB)  Finance (FAS) and Energy(ERX)
So in the paper account I will be buying.
Score - Bulls: 8   Bears: 2
----   T H E   B U L L S   ----

• Biotechnology as represented by BIB
• Energy as represented by ERX
• Finance as represented by FAS
• Technology as represented by TECL
• Small Caps as represented by TNA
• Natural Gas as represented by UGAZ
• Gold as represented by UGLD
• Russell 2000 as represented by URTY

----   T H E  B E A R S   ----

• Mid Caps as represented by MIDU
• SP 500 as represented by SPXL