Over the past week or core health indicators stalled. With the exception of perceptions of risk they are all compressing right against the zero line. Our measures of the economy fell slightly. Our measures of quality, trend, and strength rose slightly and are now as close to going positive as possible without breaking zero. As a result, we have to wait another week before changing any portfolio allocations.
Unless the market falls sharply next week I suspect some of our indicators will turn positive and result in removing some hedges and adding exposure. Our hedged portfolio is currently 70% long and 30% short. The long / cash portfolios are both 40% long and 60% cash.
Below is a chart with the current reading for each category.
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