Our master CCM Risk Exposure Model, which includes some new rules, calls for very limited reduction in risk (0% to 3%) based on the deterioration that was present Thursday morning. We also ran each of our holdings through the CCM Trend Following Model, which also has a set of recently added rules. The results are similar with the Trend Following Model; it allows for a very slight reduction in risk; we could cut our exposure by 2.85% based on a full allocation of 100%.
Weekly Close Most Important
Since the models rely heavily on weekly charts, we will check everything again Friday. If we need to make some adjustments to stay aligned with the rules and models, we will do so before Friday’s close. A push down to 1628 on the S&P 500 would not be out of character for an uptrend. A close Thursday above the 1655-1657 range would be a minor win for the bulls.
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