Weekly Risk Report 05/4/2009
SignalPoint portfolios continue to trim various positions including: Corporate Convertible Bonds, Telecommunications, High Yield Foreign Sovereign Debt, Emerging Markets, Consumer Cyclicals, Energy and Information Technology. It is interesting to note that the “long government bond” ETF has retraced from our December sales almost -17%. It is now back near the point where we’ll start adding back to inventory.
Three of the four i-Wave components rose in risk level this week, but only one of them is currently as high as ‘neutral’ with the three remaining solidly bullish. It is important to understand how rare it is to have all four components in harmony as we had earlier this year. Even three giving the same bullish signal is unusual. Overall the i-Wave remains in the bottom 10th percentile of its historic range since 1982.
While many of our component ETFs were near 100% invested during much of the last 6 months the recent selling has brought the cash reserve levels up near the suggested level of the i-Wave. This “final filter” for the SignalPoint process continues to be a good guide.
