There was very little moved in the indicators underlying Northlake’s Market Cap and Style models for October.  As a result, neither model triggered a new signal.  The Market Cap model still favors large caps and the Style model is neutral on growth vs. value.  Current client positions in the S&P 500 (SPY) will be held as a proxy for large caps, while Style exposure will remain evenly split between the Russell 1000 Growth (IWF) and the Russell 1000 Value (IWD).

Movement in model indicators was mild.  One technical indicator of small cap but the Market Cap model still is firmly in large cap territory.  Including October, the model has been on a large cap signal since the beginning of April.  The shift in favor of large cap was early but small caps peaked in late August and large caps have continued higher since then.

The Style model also saw only a single technical indicator change for October.  The signal strength is right in the middle of neutral band.  Following an accurate stretch of seven months out of eight on a growth signal, the Style model has been at neutral for four of the past five months.  This has started to work well recently with strong economic growth and reflation driving value stocks higher as several growth stocks have struggled, most notably, Facebook. The Style model has produced the best performance among Northlake’s stock market strategies, up in the double digits year-to-date.

SPY, IWD,  and IWF are widely held by clients of Northlake Capital Management, LLC, including in Steve Birenberg’s personal accounts.  Steve is sole proprietor of Northlake, a registered investment advisor.  Northlake’s regulatory filings can be found at www.sec.gov