August Model Signals

I was out of town and unable to post on the August Model Signals last week. As clients have seen by now, the new signals led to a trade in the ETF portion of their portfolios. Specifically, the Market Capitalization model shifted from a mid cap signal to a small cap signal. Consequently, all holdings in the S&P 400 Mid Cap (MDY) were sold and swapped into the Russell 2000 Small Cap (IWM). The Mid Cap holdings were sold for almost a 5% profit. There were several shifts in underlying factors that led to the new signal