The MarketClub ETF Portfolio/strategy created earlier this year has been quiet this summer as all four ETFs were on either a neutral or short (sell) signal. At its core, the service is a trend-following trading system. The strategy I created tracks MarketClub’s Trade Triangle buy/sell signals on four ETFs – USO, SPY, FXE, and GLD. For background on the portfolio please see my initial article on the portfolio here.
This portfolio should be looked at more as a collection of trades, rather than a comprehensive portfolio. The reason the “portfolio” has been so quiet this summer is the four ETFs tend to be highly correlated, so when one is on a signal, the other ETFs have a high probability of sharing the same signal. This is not a fault of the signals, but in my choice of ETFs. I may add some uncorrelated ETFs, such as TLT, in the near future in order to increase the number of signals and offer a better overall representation of potential applications of the signals.
MarketClub is a sponsor of Scott’s Investments, but these trades/tests are conducted in near real-time (I typically don’t have time during the day to publish the trades, so I post them in the evening). My objective is to track and test, out-of-sample, the effectiveness of their trade signals.
Two long trades have been signaled on GLD and SPY in the past week. A monthly trade triangle was triggered today (8/23) for GLD at 162.18. SPY had a monthly trade triangle signal last week (8/16) at 141.66. My blog update regarding the SPY signal is tardy, but I will track the portfolio using the 8/16 signal price.
The MarketClub chart for GLD is below:
The MarketClub chart for SPY is below:
To track the historical performance and current trade performance click on the “Marketclub ETF Portfolio” on the right hand side of Scott’s Investments.