Sector review
I applied a MACD histogram indicator to each sector ETF and a few others. The parameters gauged the strength of the 3.3yr cycle and applied a trend indicator to the histogram. It normally works well and catches changes in trend sooner than the basic MACD.
Of 13 ETFs, indices, and ratios to which it was applied, only 3 were
in uptrends, with 9 trending down. The uptrends were in staples, utilities, and healthcare, all of which we have little discretion about whether to consume or not.
The 10 downtrending items were SPX, base metals, semiconductors, basic materials, energy, financials, industrials, technology, consumer discretionary, and the ratio of consumer discretionary to staples.
Need I say that This Is A Sick Puppy?
I plan to close my longs on the first decent rally, and add shorts.
Holding long SPY, SSO.
Holding short VEU, XLB, SMH, and long GLD.
Oddlot
Stay on the right side of the cycle!
