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Weekly Signals Update – December 27, 2021 [Premium Signals]

The weekly systematic trading reports include open positions, new signals and year-to-date performance of seven trading strategies. Access to report requires Market Signals or All in One subscriptions. 

Market Recap and Comments

Stocks (SPY) gained 3.2% and ended the holiday-shortened week at new all-time highs. Commodities (DBC) rallied 3.1%. Gold (GLD) gained 0.7%. Bonds (TLT) fell 1.5%. DBC is up the most (+40.5%) year-to-date while GLD is down the most (-5.3%.)

Four of the active strategies were up this week. MRDOWW had one of its best weeks with 4.1% gain. Only Dow 30 long/short (DOWW) fell 0.4%.

Starting with the next report, one strategy will be removed (SPYLMAW) and replaced with a tactical asset allocation strategy based on price series momentum (TFD3W). There will be a minor change to ETFNRW strategy for exposure to international stock markets (-ex US).

For next year, our objective with weekly strategies is the same as in previous years: provide sufficient diversification and minimize drawdown. Alpha generation is not one of our objectives with these particular strategies. For those interested in more speculative setups, besides VOLZ strategy that trades UVXY long/short and a few other strategies, recently we introduced a momentum strategy for NASDAQ-100 stocks.

VOLZ core strategy is up 118% year-to-date at about 22% maximum drawdown. The hedged version is up 23.6% at about 28% drawdown. The NASDAQ-100 momentum strategy is up 49.5% year-to-date at about 28% maximum drawdown. High returns come at higher risks and there is no way around it; it’s a law of finance.

Strategy positions and performance as of close of Thursday, December 23, 2021.

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