*** NEW: UPGRADED LEVERAGE STRATEGY COMING NEXT WEEK ***
We are pleased to announce that will be implementing a "leverage trigger" for the CORE EXPOSURE model. When the indicators suggest the market is "in gear" and trending higher, the leverage trigger will effectively be switched to the "on" position. This means that when the leverage trigger is "on," the exposure level for the CORE model will be a percentage of 200% long (and when the leverage trigger is "off" the exposure will be a percentage of 100% long).
For example, if the exposure level is 55% and the leverage trigger was "on," the exposure for the day would be 110% long. The overall goal is to produce higher returns in our CORE EXPOSURE approach during positive market environments.
The Early Take on the Market:
The focal point in the markets this morning appears to be the potential for tax reform and some new developments in the French election. As far as the "Trump Bump" is concerned, there can be no denying that the current rally has run a long way in a very short period of time. For example, stocks have put in the equivalent of an above-average calendar-year return on the S&P 500 in a little over three months. In short, this is what an overbought condition looks like. So, with a long weekend ahead, traders may be reassessing both the probability and perhaps more importantly, the timing of the "massive" tax plan currently being hatched by the White House. The latest development here is yesterday's comment that health care must be dealt with before tax reform. As such, traders may decide to take a step back from the frenetic pace of buying seen over the past couple weeks. Across the pond, there is a new twist in the French ...