Asset Allocation Results - Jan 2015

Sunday, February 1, 2015 EST
The Asset Models for January 2015 all had a positive return. This speaks well of the Relative Strength Asset Allocation process considering the market was down close to 3% in January.

Asset Allocation Results for January 2015

Our best performing model was the High-Yield Model which returned over 4% in January. This was due to not High-Yield but the model allocating into safer bonds for January 2015.

In late December we sent an email to our members that Bonds may be a better choice for January 2015 even though some of the models called for stocks.  

The models may still call for stocks based on relative performance, but looking at Seasonal Returns and our Stock Market Levels indicator it can provide some additional insight to weight more heavily towards Bonds and less towards Stocks.  (Bond Seasonal Returns shown below, to see Stocks Seasonal Returns please login)

Bonds January 2015 Returns

The Market Levels Indicator raised a Red Flag in late December showing that the stock market may start trending down, which in fact it did. 

The Market Levels indicator is now reaching the Oversold Area which means the market may be bottoming out.  Also consider that historical returns for February are typically flat. If the market sinks further March may provide a good rebound play into stocks since seasonally March-April are strong months for stocks.

Stock Miner Updated Features

Tuesday, January 13, 2015 EST
We released an upgrade to our Stock Miner Tool.

Stock Miner Overview:  Stock Miner will tell you (based on historical data) if buying a stock or ETF on a Monday and selling it on a Friday turned a profit 90 to 100% of the time.

1. Weekly Trades:  This feature allows you to search for stocks or ETFs trade candidates that if purchased on a Monday (at the open) and sold the same week on Friday (at the closed) has the potential of posting a profit based on historical trades.

2. Monthly Trades:  This feature shows what stocks or ETFs if purchased the first trading day of the month (at the open) and held until the last day of the month (sold at the close) has the potential of posting a profit.   

The screen shots below (with search results) for Weekly and Monthly Stock Miner trade candidates

Stock Miner - Weekly Trades

Stock Miner - Monthly Trades