Wednesday, September 25, 2013

Model Portfolio Changes

I don't like the way the market is behaving right now. The Dow has been down several days in a row so I dumped DDM for a small gain of 1.18%. I also dumped TBT for a gain of 15.09%. This may be very significant because TBT is a short of the 20yr treasury. When TBT goes up the price of bonds goes down and the yield goes up. TBT has turned down which means the price of bonds is going up and yield is going down. This typically happens in a flight to quality which should mean the stock market is going down. To replace it I placed a bet on UBT which is a gamble the price of bonds will go up and the yield down. Charts below. As you can see TBT dropped below the moving average line which is a sell signal and UBT moved above the moving average line which is a buy signal.





 

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