Commentary

5/19/21 Current Signal xLH

The failure of the 2nd consecutive Thursday/Friday rally seems about to go from foregone conclusion to official, just in time for a third consecutive rally attempt tomorrow.

Value is dominating growth in all three Yrmolation periods with SPLV and USMV lagging among value ETFs. SPLV pays monthly dividends, but I don’t think investors expect it to exact such a heavy return penalty versus its peers.

Among the leveraged ETFs, LABU investors would still be doing quite well over the Yrmolation periods (as usual) if they mechanically bought the close and sold the open every day. Tech numbers (SOXL, TECL, TQQQ) have also turned quite poor. As these guys get weaker the CO returns look better and better.

Either x00 will appear if today stays weak, or x30 on some stability.

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