These days equity market is skating on thin ice. Historically, when the curve of new highs minus new lows on the NYSE is falling, it signifies a drop coming in the markets. Therefore rebounds are likely to be short lived. However, the bull market can climb despite that underlying erosion of new highs and, until Fed rates reach a critical level of 4-6%, markets are likely to only experience declines that rebound and recover by forming new highs afterwards. Today’s energetic rally was due to a lot of short-covering.

For now we will take advantage of short term trades particularly in our Index Trader System. It seems to be working given our recent quick 2% gain for TLT, the long-dated Treasury bonds. We could tell a rebound for equity market in US is in the cards. So we cashed out of TLT this morning as per our signal last Friday night. The Canadian Index Trader is still long XLB.

Signal Pages Snapshots

U.S. Index Trader:

We Cashed out on August 10, 2015 and sold TLT with a gain of 2%, at opening.

Presently in Cash

Symbol Signal Date Entry Date Entry Price Stop Price Latest Closing Gain/Loss $ Gain/Loss % Action
TLT 7/29/2015 7/30/2015 $121.21 $21.00 $123.41 $2.2 + 0.27 Dividend 2.01% Cashed Out

Canadian Index Trader:

Symbol Signal Date Entry Date Entry Price Stop Price Latest Closing Gain/Loss $ Gain/Loss % Action
XLB.TO 7/29/2015 7/30/2015 $24.09 $24.00 $24.29 $0.20 0.8% Stay LONG

US Equity Sector Portfolio

In Cash

US Bond Sector Portfolio:

In Cash