Wednesday, March 10, 2010

MLR Rotator Update

The MLR Rotator closed Tusday with EWC at the top of the list . . closely followed by IWM and the Qs . . . 2 ETFs majors that have led the market up recently. The closing numbers would have been much stronger had the markets not suffered a substantial reversal in the afternoon session as the NYAD plunged through 1, rebounding slightly to close at 1.27.
While the market majors all closed in the green, so did the VIX and VXX and, as mentioned previously, this signal of market instability in typically resolved in favor of volatility.
Keep in mind that the MLR sort is based on 2 day bars . . were it based on only one day bars it would look like the sort below. The VXX and VIX made nice rallies into the close and Project Z now has the VIX as a BUY, while the TS pivot low signal generated a BUY on Monday.

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