Tis the season to be AIQ – literally

Dear Traders 

Happy Holidays or not given how the Markets tumbled the day after Thanksgiving. BTW, it was also the last full week of November. 

Time for me to run my AIQ seasonal filter on my top 2500 stocks 

The filter is highly configurable and I can select which period of time, looking back from a given date to find a consistent price move up or down. I’m looking for it to repeat every year going back 7 + years. 

I first came across the concept of seasonal consistency through Jay Keppel’s work JayOnTheMarkets.com and his books on Seasonal Stock Market trends. Many of you will have heard of the classic seasonal patterns like ‘Go Away in May’ or “the Santa Claus rally’. My AIQ seasonal screener can find these type of events in individual stocks. Events that happen every year at the same time. 

Here’s how the AIQ Seasonal Screener works 

How long do you usually hold a trade? I like to hold a trade for a month or less, that’s about 22 trading days.. So, I have cash available to invest Monday November 29th. All I need do is pick a date one month from that date and look for stocks that consistently made a profit over those 22 trading days, long or short, every single year going back the last 7 years. You can look back further but 7 seems to be pretty good consistency to me. 

It’s that Simple 

November 29th to December 29th, there were a handful of long stocks with seasonal patterns and the same on the short side. I liked the short side given the current market. 


All these stocks lost money in every December for the last 7 years

I highlighted GRMN and TTEK as both on average lost over 4% in December for last 7 years.


Here’s an AIQ 7 year seasonal chart of TTEK the white line is the average

Here’s an AIQ 7 year seasonal chart of GRMN the white line is the average

Want to go long?

While there were no candidates in my US stocks, there were 3 UK stocks showed up. BRW-LON averaged 9.61% in December over 7 years. That’s impressive.


Here’s an AIQ 7 year seasonal chart of BRW-LON the white line is the average 

Next time I’m going to start to look at the major markets in specific periods and see if we can identify seasonal patterns that are hidden under the radar of everyday noise.

How can I run an AIQ Seasonal scan?

  • First download the scan from our server click here
  • Locate the file Seasonal 3 RD.EDS likely in your /download folder and move it to your /wintes32/EDS Strategies folder
  • Open AIQ EDS from the Main Menu
  • Click File, Open and locate the /wintes32/EDS Strategies/Seasonal 3 RD.EDS file
  • The file is set for seasonal length of 22 days but you can change this to whatever length you wish
  • Remember the date you run the report, like in the example above is 12/31/2020, it looks back in this case 22 days, then it checks 12/31/2019 and looks back 22 days etc. There would be no point it setting the date to run the report to the current date as it would look back 22 days, and you’d have missed the seasonal candidate stocks move.

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The Bartometer

November 7, 2021

Hello Everyone,

Wow, it was a good month for the stock market. Last month if you read the Bartometer I stated that my computer technical analysis models were giving me BUY signals and that it was a good time to add to equities after I was saying on my August and September Bartometer that the market should fall.

Well, the market went up 6-9% since those signals and your stock side of your asset allocation total should have risen nicely. On the other hand, the bond side actually fell slightly. Where do we go now? Well, the stock market is now 33% overvalued based on earnings and interest rates, but we have tail wind seasonal strength that could push the market higher into the end of the year. Even though the market could continue rising, I don’t see it rising more than 3-5% from here.

The risk is now getting a little high. If your stock allocation is high and you are near or in retirement I would reduce equities somewhat. There are also buffered ETFs (Exchange Traded Funds), that will allow growth on the upside and protection on the downside.

The economy still is doing relatively well and earnings should continue to grow 10+ plus for next year. Where do I think the best sector will be over the next 5 to 10 years? Artificial Intelligence! Right now the entire artificial intelligence market is under $80 billion per year and over the next 10 years many analysts are predicting it could be an $80 Trillion market. This sector could grow more than 42% per year over the next 10 years. There are ETFs and stocks that should benefit from this trend. Other than that I love large cap growth mixed in with small cap value.

Inflation and interest rates are expected to rise over the next year. Bond investments should be kept to a short duration and floating rate bonds that will raise the interest rates should be popular. In addition, financial stocks tend to do better in a rising interest rate environment.

Listed below are some of the INDEXES for both the equities and interest rate markets.
Dow Jones +20%
S&P 500 +26.1%
EQUAL WEIGHTED S&P 500 +27.3%
NASDAQ Aggressive growth +27.1%
Large Cap Value +20.0%
I Shares Russell 2000 ETF (IWM) Small cap +35.2%
Midcap stock funds +27%
International Index (MSCI – EAFE ex USA +9.02%
International Emerging Markets -1.22%
Financial stocks +37.5%
Energy stocks +58%
Healthcare Stocks +18%
Investment Grade Bonds (AAA) Long duration -1.4% High Yield Merrill Lynch High Yield Index +3.63%
Floating Rate Bond Funds +4.02%
Short Term Bond +.67% Multi sector bond funds +2.7%
Gold -4.68%
10 year Bond Yield 1.45%
Moderate Fund +12.4%
Average Disruptor Fund Aggressive growth -1.8%

Dr. Robert Genetski’s Excerpts
Market Outlook

Another week, another series of new highs for stock prices. All the key indexes surged higher this past week. Small cap ETFs led with gains of 4%, the NASDAQ rose 3%, the S&P500 2%, the Dow up 1%.

Once again there was a flurry of good news on the economy, financial front and policy front. For the economy, business surveys from early October indicated healthy growth. Financial markets improved as interest rates declined in the wake of the Fed’s taper announcement.

On the policy front, the election of Republicans to state office in Virginia, a close election in New Jersey and city elections to restore law and order were a clear rejection of woke policies. Look for Democrats to scale back their destructive policy plans or face total defeat in next year’s elections.

For stocks, the latest surge brings the S&P500 to 33% above its fundamental value. The combination of low interest rates and the Fed’s promise to keep them low until at least the middle of next year, point to the potential for additional increases in stocks. However, the higher they go, the greater the risk an abrupt surge in interest rates will lead send them tumbling down.

A Look Back

Today’s employment report shows a strong gain of 604,000 private payroll jobs in October. Moreover, gains in hours worked and in average hourly earnings both increased at annual rates of 4% to 5%.

The employment data are consistent with other reports, all of which show real growth in the economy is increasing at close to a 5% annual rate going into the final months of this year.

S & P 500

The S&P 500 is above. As you can see, the up arrow indicator is where my computer models showed a buy signal on October 10th and the subsequent rally. I am still long term BULLISH on the market, but we are again getting somewhat overbought and the market is 33% overvalued so you need to be a little careful. Any agitation in the economy or political arena could make the market fall.

There is also one thing I want to show you. See where the arrow is putting? That is the extended trend-line where it supported the entire rally over the last year. That trend-line is now at resistance unless it is broken on the upside and the market stays above that line for 2 to 3 days.

So we need to watch either the break on the upside or the topping of the market right where the arrow is pointing. Seasonally the market forces are still to the upside.

next on the chart is the SK-SD Stochastics chart, this shows the level at which the markets are oversold or overbought. Last month it was under 32,
(oversold), now it is overbought (over 88). This means over the 88 level the markets are more overbought compared to when the SK-SD Stochastics was below 32 when it was oversold and more attractive.

The MACD (or Moving Average Convergence Divergence graph) is next. I call it the momentum indicator. Last month, the pink line was about to break out above the aqua line and I said it was oversold and a BUY. Now it has rallied and it’s no longer cheap.

On balance is to the left and it is a powerful indicator. You want to see the indicator breaking out to new highs when the market is and as you can see, the indicator is breaking out to new highs as the market is as well. This is positive. I wish volume were stronger as the market is pushing to highs. This is good, but would like to see it stronger for conviction.

Support levels on the S&P 500 area are 4601, 4563, and 4484 Slight Resistance at 4706
NASDAQ support levels are 15,540, 15400, 15,278 and 14,857
These may be safer areas to get into the equity on support levels slowly on the accumulation areas.

THE BOTTOM LINE:

The markets rallied nicely over the last month and as indicated on the Bartometer we got Buy signals on October 8th and we are in seasonal strength. Even though the seasonal indicators are still positive, technical indicators are now getting a little overbought. This means not to add a lot to the markets like I indicated last month. I like large cap growth as well as small value and financials. Artificial intelligence should be one of the fastest growing sectors over the next 10 years.

Best to all of you,

Joe Bartosiewicz, CFP®
Investment Advisor Representative

Securities and advisory services offered through Sagepoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are
independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012

Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be
construed as recommendations to buy or sell anything.

Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.

Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated
with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

[ New Training ] Crypto Finding The Next Big Thing

Many of you may know me, I’m Steve Hill and I’m CEO of AIQ Systems. We’ve provided high end trading analysis tools for over 35 years. My good friend and, client for over 20 years, multi-millionaire investor, Darren Winters is holding a Crypto investing training session this Thursday October 14, 2021 1:30 PM – 2:45 PM EDT

Register now

It’s free to attend and is purely an educational session, there is NO follow on course for sale. 

He held this same training yesterday and it was full to capacity, 1,000 people attended with almost 1,000 turned away.

So if you or a friend / relative / colleague want to join tomorrows crypto training, get your place straight away

(forward this post to anyone you think might be interested so they don’t miss out)

Register now

Darren will be covering:

1) The 6 criteria to look for when deciding which crypto to invest in

2) What could be the best performing investments this year

3) The process of how to buy for beginners and advanced investors

4) Why today, there is still massive potential in this market

He’ll also be talking about what he thinks could be one of the biggest crypto launches this year and how to get in early. 

If you’re like me, and you’re still working on getting up to speed with how this burgeoning market works, Darren’s training is truly eye opening. Best of all it’s free.

Also you can forward this post to any friends / colleagues / relatives who you think would be interested.

It’s going to be a very valuable session, so they’ll be thanking you for it  – plus you’ll have someone to share your thoughts with.

Just make sure you logon 5 minutes early as we might fill to capacity again!

To get your place go to:

Register now

After registering, you will receive a confirmation email containing information about joining the webinar.

Regards

Steve Hill, CEO 

AIQ Systems

P.S. We are not planning a replay so do make sure you mark this on your calendar / set a phone reminder so you don’t miss it.

P.P.S We’re also working on getting major crypto data into AIQ.

Bartometer

October 10, 2021

Hello Everyone,

Back in August I stated that the August through October time horizon is the season the stock market tends not to do well and it did just that. But now October is here and seasonal pressure is now to the upside starting in the 2-4th week of October. Does this mean the correction is over? Not at all. It just means that seasonal trends are higher through the end of the year and into January. Earnings and interest rates control the direction of the stock market over the long term. Currently the interest rate market is rising, bonds are declining, and stocks have bounced a little since Oct 1st, but still below its 50 day moving average. So I will not get Bullish until the S&P closes above 50 day moving average and stays there for 2-3 days. Up until then I am still short term Cautious.

If earnings control the direction of the stock markets over the long term then where are earnings expected to go? Earnings still are coming out better than expectations and interest rates should stay low for a while longer so any decline in the markets allow us to buy cheaper shares to redeem over the longer term. Below is the S&P 500 earnings growth chart.

S&P 500 Earnings Growth Chart

Source: S&P

83% percent of companies reporting earnings are beating their expectations. Over the last year earnings have risen 13.95% and are expected to continue to grow approximately 10.8% over the next year. If this happens and interest rates stay relatively low then markets tend to follow earnings over the long term. There are caveats that may disrupt this somewhat:

  • Covid-19 escalation as we are headed into the winter months
  • China problems, inflationary pressure, job growth reduction and more.

This is why financial planning is not a static process and needs to be looked at on a regular basis. A diversified portfolio in different asset classes may protect you somewhat. If interest rates are rising, then floating rate bonds that must pay more as interest rates rise may be better than regular bond funds. Financial stocks tend to do better when interest rates rise because their profits rise. If there are inflationary pressures then the typical investments that tend to benefit are ones that people should consider are metals, oil, real estate, inflation protected bonds, agricultural commodities etc.

Listed below are some of the INDEXES for both the equities and interest rate markets. The source is Morningstar.com up until October 9, 2021, these are passive indexes.

Dow Jones +15%
S&P 500 +18.1%
EQUAL WEIGHTED S&P 500 +21.3%
NASDAQ Aggressive growth +15.1%
Large Cap Value +15.0%
I Shares Russell 2000 ETF (IWM) Small cap +13.2%
Midcap stock funds +17%
International Index (MSCI – EAFE ex USA +9%
International Emerging Markets -1.22%
Financial stocks +32%
Energy stocks +53%
Healthcare Stocks +13%
High Yield Merrill Lynch High Yield Index +2.4%
Short Term Bond +.12%
Multi sector bond funds +2.1% Gold -7.92% 10 year Bond Yield 1.6% Moderate Fund +8.4% Average Disruptor Fund Aggressive growth -11%

Market Outlook

Stocks rebounded this past week with gains of 1% to 3%. The Nasdaq and QQQs were at the low end of this range while the S&P500, Dow and small caps were at the upper end.

While the rebound in stock prices is encouraging, most stock indexes remain below their 50-day averages with 10-day averages below the 50-day averages. Hence, technical (psychological) indicators remain negative.

The economic news this week came in better than I had expected. While advanced Markit business surveys suggested the economy was slowing, ISM business surveys pointed to continued strength. Markit also revised its advance September data to show stronger growth among service companies. On balance, the business surveys show September business activity remained strong

Businesses also reported near-record increases in prices in September. Concern over inflation is one of the clear forces putting upward pressure on interest rates. The yield on 10-year T-Notes is up 30 basis points since mid-September.

When interest rates surge as they have done in recent weeks, there is often a leveling off period. In spite of any potential leveling off, the upward pressure on rates should continue. As for stocks, the most likely outlook is for relatively stability before resuming their upward drift.

A Look Back

Today’s September employment report shows the economy remained strong last month. Private sector payroll jobs increased by 317,000, a 3% annual rate. Weekly hours worked and average hourly earnings rose at a 6% and 7% annual rates, respectively.

Economic Fundamentals: neutral

Stock Valuation: S&P500 over-valued 25%

Monetary Policy: expansive

Recommended Stock Exposure: 85%

CHART SOURCE:AIQSYSTEMS.COM

The S&P 500 is above. In August and September I went over the technical indicators and they were VERY OVERBOUGHT and I expected a 3-6% correction. The S&P 500 fell about 6% from its high. Now, it’s a different story, the markets are OVERSOLD, meaning it may be a better BUY. Seasonally the market is still in a weak time through October and could still fall as the S&P is still below its 10 and 50 day moving average. See the 10 day in red and the 50 day in green. We need to see the S&P 500 close above the 50 day moving average at the current price of 4430 in green and stay there for a few days for me to get bullish again. Current my AIQ computer models and other technical indicators are very oversold and any good news can drive this markets higher.

The next indicator is the MACD or momentum indicator. Since September it has trended downward. Now, the pink line is about to break out and through the green line and that would be a bullish trend break.

The next indicator is the SD-SK Stochastics indicator. It is an overbought or oversold indicator. In August and September I was saying that the market was overbought and should go down. Any price above 88 is overbought. Now that it is under 32, it’s somewhat over sold. This may be a good time for longer term investors to start to accumulate equities.

The last indicator is the stochastic indicator. A sell indicator is when it falls below 80 and the buy indicator is when it crosses 20 and it did a few days ago. We are not out of the woods yet, but the markets look a little better to enter then they did 2 months ago.

Support levels on the S&P 500 area are 4365, 4237, and 4044 Resistance at 4438. These may be safer areas to get into the equity on support levels slowly on the accumulation areas.

THE BOTTOM LINE:

Seasonally the markets are getting over its seasonal weakness between now and the end of October, and my computer models are starting to give Buy signals. But the S&P 500 needs to close above its 50 day moving average and stay there for a few days to set a new bottom. So over the next couple of weeks you may want to dollar cost average a little money into the markets and more if it breaks out above its 50 day moving average Caution is still key however.


Best to all of you,
Joe
Joe Bartosiewicz, CFP®
Investment Advisor Representative

Disclaimer

Securities and advisory services offered through Sagepoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012
Technical Analysis is based on a study of historical price movements and past trend patterns. There is no assurance that these market changes or trends can or will be duplicated shortly. It logically follows that historical precedent does not guarantee future results. Conclusions expressed in the Technical Analysis section are personal opinions: and may not be construed as recommendations to buy or sell anything.
Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.
Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.

Cycle/Trend Analysis And The MAD Indicator

The importable AIQ EDS file based on John Ehlers’ article in the October issue of Stocks & Commodities, “Cycle/Trend Analysis And The MAD Indicator,” can be obtained on request via email to info@TradersEdgeSystems.com.

John Ehler introduces the moving average difference (MAD) indicator where the moving average lengths are different by approximately half the period of the dominant cycle in the data.

The code is also available below. Code for the author’s indicator is set up in the AIQ code file.

!CYCLE/TREND ANALYTICS AND THE MAD INDICATOR
!Author: John F. Ehlers, TASC Oct 2021
!Coded by: Richard Denning, 8/15/2021

!MAD (Moving Average Difference) Indicator 
!(C) 2021 John F. Ehler

Shortlength is 8.
LongLength is 23.
MAD is 100*(simpleavg([Close], ShortLength) - 
    simpleavg([Close], LongLength)) / 
    simpleavg([Close], LongLength).
    

Figure 9 shows the MAD indicator on a chart of Tesla, Inc. (TSLA).

Sample Chart

FIGURE 9: AIQ. This shows a chart of Tesla, Inc. with the MAD indicator applied.

—Richard Denning
info@TradersEdgeSystems.com
for AIQ Systems

Bartometer

September 12, 2021

Hello Everyone,

I hope you all had a great summer and did some of the things you wanted after a long period with Covid. I am confident that our lives with get to some semblance of normalcy soon.

The market is now in the seasonally weak period of the year and I expect a continued short term volatility in the market. September is usually a volatile time of the year with October bottoming. November through January is usually a seasonally strong period. The Dow Jones has closed below the 50 day moving average a negative indication in the market. The S&P 500 sold off Friday and it is once again at the bottom of the trend line. My AIQ models are on a short term sell signal over the last 2 weeks and the Dow Jones support level is broken. Any close below 4413 on the S&P will get me Very Cautious on the market and short term there could be a break in the trendline pattern and start a correction in the market. Long Term I am very bullish but Short term traders get in and out of this market very quickly. They shift money in herds, buying and selling with large pools of money creating short term spikes in volatility. Long term investors need to stay the course and right now Volatility can cause declines in the portfolio. If you are over the age of 60 or nearing or in retirement I would reduce equities by 5-10%% if you are concerned about short term potential volatility that may happen. The markets are now 29% overvalued.

Earnings are still coming out better than expectations and interest rates should stay low for a while longer so any decline in the markets allow us to buy cheaper shares to redeem over the longer term. Expect Volatility.

Listed below are some of the INDEXES for both the equities and interest rate markets.

Dow Jones +14.58%
S&P 500 +19.6%
EQUAL WEIGHTED S&P 500 +21.65%
NASDAQ Aggressive growth +20%
Large Cap Value +18%
I Shares Russell 2000 ETF (IWM) Small cap +13.4%
Midcap stock funds +17%
International Index (MSCI – EAFE ex USA +10%
International Emerging Markets +2%
Financial stocks +28%
Energy stocks +28%
Healthcare Stocks +17%

Moderate Mutual Fund Investment Grade Bonds (AAA) Long duration -2.5%
High Yield Merrill Lynch High Yield Index +3.5%

Floating Rate Bond Funds +3.51%
Short Term Bond +.9%
Multi sector bond funds +2.9%

Gold -6.3%

10 year Bond Yield 1.23%

Moderate Fund +8.7%

Average Disruptor Fund Aggressive growth -2%

Dr. Robert Genetskis Economic Excerpts

Market Outlook

The market continues to ignore the Delta variant, supply-side constraints and the debacle in exiting Afghanistan. None of these potential headwinds were able to withstand the Fed Chairman’s assurance there would be no hike in interest rates until after next year’s election.

Chairman Powell said inflation is under control. He also indicated rising prices were the result of almost anything but the Fed pouring more money into the economy.

This is typical Fed speak. The Fed creates money with abandon, takes credit for a booming economy, then blames inflation on everything else. It’s called “modern monetary theory,” but it’s as old as money itself. Based on early business surveys, I had expected some of the economic news for August would show brief signs of a slowdown. However, the ISM survey for manufacturing indicates business was strong and new orders are signaling further strength.

The S&P500 is now 29% above its fundamental value. So far, the Fed’s monetary explosion is carrying stocks well above their fundamental value.
So long as the Fed is able to keep interest rates well below their normal levels, stock prices will remain elevated.

A Look Back

August’s report shows only 243,000 private sector payroll jobs were added in August, well below the 800,000 additions in June and July. The smaller job gains are consistent with business surveys showing little or no job gains. The amazing thing is businesses are still rapidly expanding output in spite of employing 3½% fewer workers than at the pre-Covid peak.
Economic Fundamentals: positive Stock Valuation: S&P500 over-valued 29% Monetary Policy: expansive Recommended Stock Exposure: 85%

The S&P 500

The S&P 500 is above. If you look you can see that the S&P has broken the trend-line (negative) and is approaching its 50 day moving average. This is short term negative and I will get VERY Cautious if it breaks the 4413 level on a close. The Dow Jones Average closed below its 50 day moving average. This is why I am getting Cautious and believe some of you should be taking profits and or rebalancing if you have too much money in the stock market. September is usually a volatile month, but any decline of significance and I will get Bullish as I believe a major selloff would could be a major Buy if you are a long term investors. If you are trading stocks, then I would make sure your companies are solid with great earnings, revenues and balance sheets. Call me with questions but right now I am Cautious to possibly Very Cautious if 50 day moving average is broken on a close.

The graph under the price chart is Momentum and as you can see the pink line closed below the blue line, a negative.

The next chart is Stochastics. This shows over bought and oversold indexes. Sell signals are given when the Stochastics breaks below the 80 as it is showing now.

On Balance Volume is trending lower. This shows higher volume on sell offs. This is a negative.

CHART SOURCE: AIQ SYSTEMS.COM

Support levels on the S&P 500 area are 4413, 4224, 4010, and 4000.
These may be safer areas to get into the equity on support levels slowly on the accumulation areas.

THE BOTTOM LINE:

Long term I am Bullish but over the VERY SHORT TERM I am getting Cautious to Very Cautious. As I stated last month, The August to October season tends to be seasonally weak and September tends to be the worst. The market is 29% overvalued, we are on short term sell signals and the Dow Jones has broken below its trend-line and its 50 day moving average. The NASDAQ looks ok but if the S&P 500 closes below it 50 day moving average over the next few days it can easily drop another 3-6% to the 4222 next level. If that breaks then the next level is its 200 moving average currently at 4090.


Best to all of you,
Joe Bartosiewicz, CFP®
Investment Advisor Representative

92 High Street
Thomaston, CT 06787

Securities and advisory services are offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012

Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.

Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market

The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.

Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.

NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.

A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.

The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds

MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.

Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.

Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.

Moving Average Bands

The importable AIQ EDS file based on Vitali Apirine’s two-part article, (“Moving Average Bands,” part 1, July 2021 issue, and “Moving Average Band Width,” part 2, August 2021 issue) in Stocks & Commodities magazine can be obtained on request via email to info@TradersEdgeSystems.com. The code is also shown below.

Vitali presents moving average bands (MAB), an indicator based on the distance between the bands. MAB width lines can foreshadow strong market moves or a change in trend…

!Moving Average Bands 
!Moving Average Band Width
!Author: Vitali Aprine, TASC July & Aug 2021
!Coded by: Richard Denning, 6/14/2021
!INPUTS:
Len1 is 50.
Len2 is 10.
Mult1 is 1.
C is [close].
MA1 is expavg(C,Len1).
MA2 is expavg(C,Len2).
MAdiff is MA1 - MA2.
DV is sum(MAdiff*MAdiff,Len2) / Len2.
Dev is sqrt(DV)*Mult1.
MABup is MA1 + Dev. MABmid is MA1.
MABdn is MA1 - Dev.
MABW is (MABup - MABdn) / MABmid * 100. LowMABW is lowresult(MABW,Len1).

Figure 13 shows the MAB and MABW indicators on a chart of Apple, Inc. (AAPL).

Sample Chart

FIGURE 13: AIQ. This shows the MAB and MABW indicators on a chart of Apple, Inc. (AAPL).

—Richard Denning
info@TradersEdgeSystems.com
for AIQ Systems

Bartometer

August 08, 2021

Hello Everyone,

The markets continue to rise to the 4420 level and surpassing the target of 4400 I had for the S&P 500. Earnings are coming in better than expectations for the most part and stocks are following earnings.

There are two things that make stocks rise, Earnings and Interest rates:

• If earnings are rising faster than expectations and rising 5-10%+ per year, then the markets should follow the rise in earnings, because the value of the company is based on what it earns over time.

• If interest rates stay low, then companies and consumers can borrow money at a low rate and invest. In addition, low interest rates let people afford houses and other larger purchases. With lower interest rates there is minimal competition for any other type of investment, like CD’s or money funds attracting people to them. There are few choices, that it why stocks are one of the only choices in which to invest. When interest rates rise to the 3 to 5% there is more competition away from stocks and more towards higher fixed rate bonds, CD’s, and money funds. Now that interest rates for the 10 year bond is 1.15% and money market rates are 0 to .5 of 1% people gravitate toward the stock market and real estate. That is the one of the main reasons the markets are high and could stay high as long as earnings grow, and interest rates stay relatively low. Over time the equity market continues to grow as earnings grow. THINK LONG TERM!

Seasonally and historically, August to October are not good times for the markets. August has been a time where the markets have “Topped Out” and start a decline toward a low in October. “Throughout the month of July, investors had been singing ‘Summertime, and the livin’ is easy,'” with the S&P 500 posting seven all-time highs, Sam Stovall, chief investment strategist at CFRA, wrote in a Monday note. “Unfortunately,” he added, the month of August “has a reputation for disappointing investors. “He notes that since 1945, “the S&P 500 posted its third-worst average monthly return, and third most volatile performance, in August. To make matters worse, while the S&P 500 was higher 55% of the time in August, that batting average fell to only 35% following the 23 years in which the S&P set one or more new highs in July. And to add insult to injury, following the 13 Julys that set six or more new all-time highs, the S&P 500 declined an average 2.4% in August, and fell in price 12 of 13 times.”

Source: Fortune

Dr. Robert Genetski’s excerpts from ClassicalPrinciples.com

Market Outlook

Stocks moved broadly higher for the second straight week with all major indexes hitting all-time highs. Small caps also advanced, but remain 4%- 5% below their highs.

Stocks keep moving higher, behaving like the little engine that could. They are reaching a point above their 50-day average which often leads to at least a short-term correction. However, unprecedented monetary ease should continue to limit any downward correction.

Business surveys show July business activity continued to increase at a rapid rate. This raises the odds total spending (GDP) will grow at double-digit annual rates for the third consecutive quarter.

Investors ignored concerns surrounding Covid. As with the flu, Covid and its offspring variants will be with us for a while. Recent data from the US, Israel and the UK suggest the vaccine is not working as well as expected. Moderna appears to confirm this by announcing vaccinated people might need a booster after six months. Chaching!

The good news is the Association of American Physicians & Surgeons (AAPS) have very treatments for Covid, if begun in the early stages.

Unfortunately, the CDC, NIH continue to ignore the AAPS advice. They claim their job is to advise on limiting the spread of the disease, not providing medical advice.

In spite of the potential for a setback in stocks, equity portfolios should continue to maintain a relatively large percentage of stocks. With historically low interest rates, stocks remain very attractive.

A Look Back Today’s employment report shows July private payrolls rose by 703,000. In spite of the surge in jobs over the past six months, payrolls remain 4% below their pre-Covid peaks. The increase in jobs helped drive the unemployment rate down to 5.4%.

Stock Valuation: S&P 500 25% Overvalued
Economic Fundamentals: Positive
Monetary Policy; Highly Expansive

Source: Classical Principles.com

Listed below are some of the INDEXES for both the equities and interest rate markets. The source is Morningstar.com

Dow Jones +16.16%
S&P 500 +19.1%
EQUAL WEIGHTED S&P 500 +17.2%
NASDAQ Aggressive growth +16%
Large Cap Value +16%
I Shares Russell 2000 ETF (IWM) Small cap +14%
Midcap stock funds +17%
International Index (MSCI – EAFE ex USA +9.4%
International Emerging Markets +.90%
Financial stocks +29%
Energy stocks +33%
Healthcare Stocks +17%
High Yield Merrill Lynch High Yield Index +2.5%
Gold -5.2%

CHART SOURCE:AIQSYSTEMS.COM

Above is the S&P 500. As you can see, it continues to rise on a Left to Right Pattern. Last month I said if it drops below the trend-line and the 50-day moving average on a close I would get very cautious. It went right to the 5o day moving average 30 minutes prior to the close and rallied 150 points to close nicely above the 50 day moving average and the trend-line. See the arrow My computer models are still flashing Sell signals which have not been confirmed, so this is a watch and wait and realize I might sell for many of you where I am the Fiduciary on the account. August to September is usually a tough time for the market.

If the trend-line or the 50-day moving average is broken on the close I will again become very cautious.

The chart below the market is money flow and that looks good. It shows that money is still going into the market

The next chart shows that the volume as the market is rising is going up on low volume. That is not great.

The chart on the bottom is called “On Balance Volume” and it confirms the upside of the market index if it were hitting a new high like the market has. As you can see it is not doing that as of Friday. So this is a Caution.

Overall, we could have a little correction from now till October. Watch the trend-lines and the 50 day moving average for a break on the close of the day.

Support levels on the S&P 500 area are 4370, 4315, 4300, and 4256.
These may be safer areas to get into the equity on support levels slowly on the accumulation areas.

THE BOTTOM LINE:

I am still relatively Bullish on the market, but as you can see above, the market is getting overvalued and August through October are seasonally weak for the market. My target of 4400 on the S&P 500 is pierced on the upside. At this point it could correct very soon then rally to the 4500+ by the end of the year after a little setback. The Value sector of the market and the mid and large value sectors are now fairly valued. Over the longer term, technology, up about 16% should perform the best. Trendlines are very important. At this point, I would not want to see the level broken convincingly on a close. That would make me get very cautious.
Best to all of you,

Joe Bartosiewicz, CFP®
92 High Street
Thomaston, CT 06787

Securities and advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012

The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.


Did you know

AIQ TradingExpert Pro includes a Portfolio Manager that allows you to apply exit strategies to your open position, manage and balance your portfolio, and run analysis against benchmark indices.

Included in the Portfolio Manager is the Simulator tool where you can take a trading strategy and test it in real-life simulation. Once you’ve found a strategy that meets your goals, the Pick-of-the-day tool will tell you each day which stocks meet your strategy rule for trading.

“AIQ offers the ability to do a quick review of portfolios on demand is extremely helpful in managing stock portfolio’s – getting trading signals each day provides a great tool to get in front of opportunities or future problems. AIQ provides an ideal tracking system to manage assets; and that is why I have been a subscriber for 25 years. “Patrick Buffa

Bartometer

July 11, 2021

Hello Everyone,

On my Bartometer in December, I thought the S&P 500 would reach 4200 to 4400 this year. The S&P is now at 4369. Am I worried that we are getting close to my target? Yes and no. Yes, if the Covid 19 Delta Variant starts to progress and yes IF the market breaks below a 10-month trend-line. Otherwise, I am still relatively bullish on the market that can continue higher as earnings continue to come in better than expectations. One Caution, my computer models again flashed a Daily, Short term SELL signal that is not confirmed. That means to watch the trendlines for a break to see if it confirms on the downside.

The stock markets continue to edge higher, confounding many analysts, and logically the market should not be higher now than it was when the economy was booming in 2019. The markets are defying logic and normal metrics of price to earnings and other metrics of valuation as it sees more growth ahead. The market usually rises over the long term based on Earnings and Interest Rates and now Earnings are great, and Interest Rates are low. This is a perfect scenario for the stock market. The valuation of the stock market is that it is 25% over valued, but earnings are coming in better than expectations, so targets are being raised higher. The Federal Reserve is also injecting liquidity and keeping rates low.

The fundamentals of the economy are good, although slowing slightly. I am still relatively positive unless 4200 to 4224 on the S&P doesn’t hold and we have a decisive Selloff. See the graph and explanation on third page.

House prices continue to inch higher. In my opinion, the real estate market will inch higher until the economy slows, or interest rates go over 3.5% on the 15 year and 3.9% on the 30 year. Right now, it still is a Sellers’ market, this soon will slow.

The energy market still looks good, as noticed by the gas prices and if interest rates rise soon then the financial sector which sold off over the last couple of weeks should turn around to the upside. If the stock market sells off from here, you may want to add more to your stock portfolio, if you have a longer-term horizon. Please call me for guidance in the allocation of your 401(k) and a strategy meeting with me if you have not spoken to me in 6 months. I have been liking the Value sector over the last 7 months, now the growth sector, is starting to look better for purchase.

Some of the INDEXES of the markets both equities and interest rates are below.

Dow Jones +14.99%
S&P 500 +17.1%
EQUAL WEIGHTED S&P 500 +16%
NASDAQ Aggressive growth +15%
Large Cap Value +14%
I Shares Russell 2000 ETF (IWM) Small cap +15%
Midcap stock funds +15%
International Index (MSCI – EAFE ex USA +9.4%
International Emerging Markets +7.5%
Financial stocks +25%
Energy stocks +42%
Healthcare Stocks +14%
High Yield Merrill Lynch High Yield Index +2.1%

Floating Rate Bond Funds +2.61%
Short Term Bond +.6%
Multi sector bond funds +1.9% Gold -5.2%

10 year Bond Yield 1.3 Moderate Fund +8.7%

Average Disruptor Fund Aggressive growth -2%

Moderate Mutual Fund Investment Grade Bonds (AAA) Long duration -1.86%

Classicalprinciples.com and Robert Genetskis Excerpts

Market Outlook

Stock prices were mixed this past week. The Nasdaq 100 hit an all-time high Wednesday, fell 1⁄2% yesterday and ended the week up just over 1%. The Nasdaq was up slightly and the S&P500 and Dow were down slightly. Small caps lost 4%.

Good news on the economy continued. June business surveys show both manufacturing and service companies growing rapidly. Weekly employment data show the job market improving.

Monetary policy remains expansive. Monthly data from the Fed show the central bank purchased $172 billion in securities in June. How expansive will depend on how much of the new money banks have left at the Fed. That bank data won’t be released until later this month.

The economy has a lot of momentum. Strong surveys for new orders indicate rapid growth will continue at least through the summer and fall. Longer-term interest rates continue to behave as if inflation will not be a problem. The 10-year Treasury Note is down to 1.29%. In real terms, bonds provide significant negative returns.

Long-term interest rates remain well below their fundamental levels. As inflation becomes more apparent, the risk of holding longer-term bonds will also become more apparent.

A Look Back

The ISM business survey for service companies followed the Markit survey. Both surveys show service company activity remained strong in June, but not as strong as May’s hectic readings. With service business activity at 60 and new orders at 62, the service sector remains healthy.

As with manufacturing companies, the indicator for employment in the service sector was close to breakeven. The weakness in job growth from the business surveys is not consistent with the large increase in jobs from the payroll data.

Stock Valuation: S&P 500 25% Overvalued
Economic Fundamentals: Positive
Monetary Policy; Highly Expansive
.
Source: Classical Principles.com

The S&P 500

The S&P 500 is above. As you can see the index continues to rise in a nice channel pattern. Some may say it is a Rising Wedge as well. If you notice, the Trend-line and the 50 day moving average is supporting the upward trend. This means that the longer the trend holds, the more it falls if it breaks the trend. So, in this instance the 4200 to 4224 area or the trendline better hold on a close of the market. I do not want to see the S&P sell off and break the 50 day moving average or the Trend-line decisively. That could cause sellers to finally start selling the rallies and not buy the dips or sell offs.

The next indicator is the MACD or momentum indicator. When the pink line breaks to the upside above the blue line it is positive like now.

The SK-SD Stochastics line is overbought when it is over the 96 like it is now.

The indicator below is the RSI wilder Index. When it is over 70 it is considered overvalued and overbought. It is now.

On Balance Volume is an indicator showing volume and conviction of the move higher. It is not breaking out to new highs, showing me that the market is going up on lower volume.

Overall, the markets are getting flash Sells not confirmed, it means to reduce a little equity and to rebalance and watch the support levels so they are not broken.

Support levels on the S&P 500 area are 4250, 4200, 4050, and 3950. These may be safer areas to get into the equity markets on support levels slowly on the accumulation areas.

THE BOTTOM LINE:

I am still relatively Bullish on the market, but as you can see above, the market is getting overvalued. My target of 4400 on the S&P 500 is quickly approaching. The Value sector of the market and the mid and large value sectors are now fairly valued. Over the longer-term, technology, up about 15% should perform the best. Trendlines are very important. At this point, I would not want to see the 4200 to 4224 level broken convincingly on a close. That would make me get very cautious.

Best to all of you,

Joe Bartosiewicz, CFP®
Investment Advisor Representative

92 High Street
Thomaston, CT 06787

Securities and advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. 800-552-3319 20 East Thomas Road Ste 2000 Phoenix AZ 85012

Disclaimer: The views expressed are not necessarily the view of Sage Point Financial, Inc. and should not be interpreted directly or indirectly as an offer to buy or sell any securities mentioned herein. Securities and Advisory services offered through Sage Point Financial Inc., Member FINRA/SIPC, an SEC-registered investment advisor.
Past performance cannot guarantee future results. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please note that individual situations can vary. Therefore, the information presented in this letter should only be relied upon when coordinated with individual professional advice. *There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.
It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

The price of commodities is subject to substantial price fluctuations of short periods and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated, and concentrated investing may lead to Sector investing may involve a greater degree of risk than investments with broader diversification.
Indexes cannot be invested indirectly, are unmanaged, and do not incur management fees, costs, and expenses.
Dow Jones Industrial Average: A weighted price average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
S&P 500: The S&P 500 is an unmanaged indexed comprised of 500 widely held securities considered to be representative of the stock market in general.
NASDAQ: the NASDAQ Composite Index is an unmanaged, market-weighted index of all over the counter common stocks traded on the National Association of Securities Dealers Automated Quotation System
(IWM) I Shares Russell 2000 ETF: Which tracks the Russell 2000 index: which measures the performance of the small capitalization sector of the U.S. equity market.
A Moderate Mutual Fund risk mutual has approximately 50-70% of its portfolio in different equities, from growth, income stocks, international and emerging markets stocks to 30-50% of its portfolio in different categories of bonds and cash. It seeks capital appreciation with a low to moderate level of current income.
The Merrill Lynch High Yield Master Index: A broad-based measure of the performance of non-investment grade US Bonds
MSCI EAFE: the MSCI EAFE Index (Morgan Stanley Capital International Europe, Australia, and Far East Index) is a widely recognized benchmark of non-US markets. It is an unmanaged index composed of a sample of companies’ representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends.
Investment grade bond index: The S&P 500 Investment-grade corporate bond index, a sub-index of the S&P 500 Bond Index, seeks to measure the performance of the US corporate debt issued by constituents in the S&P 500 with an investment-grade rating. The S&P 500 Bond index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap US equities.
Floating Rate Bond Index is a rule-based, market-value weighted index engineered to measure the performance and characteristics of floating-rate coupon U.S. Treasuries, which have a maturity greater than 12 months.