Preparing for Week of May 4, 2015

This is a quick post to prepare Platinum members for the coming week.  Take a look at the ETFs that are under-performing SHY.  Those are the ETFs to move out of the portfolio.  Pay particular attention to ETFs with negative absolute acceleration.  TLT, VNQ, and GLD are on my chopping bloc as all three are showing negative “Golden Cross” values.  I’ve been out of GLD for a long time and recently reviewed portfolios shed TLT and VNQ.

ETF Ranking Data:  A few warning signals are showing up in the 13-Day EMA.  When the EMA cell turns red it is an indicator that the price of the ETF dropped below that particular EMA.  For example, the price of VOT is now below the price of its 13-Day Exponential Moving Average (EMA).

As a reminder to readers who recall the ITA Risk Return (ITARR) model – sell ETFs when the price of the ETF moves below the price of its 195-Day EMA.  This rule calls for selling BWX, DBC, and GLD.  The one exception I might make is DBC as you will note it is in a state of recovery as the absolute acceleration percentage is very high (56.4%).

You can see that higher ranked ETFs have a greater cushion with respect to their 195-Day EMA.  Watch that cushion from week to week.

ETF Ranking for Pasteur