Market Map Allocates To Cash

Since the equity allocation instruction of post 12/31/2015 ( https://stockmarketmap.wordpress.com/2015/12/31/market-map-model-allocates-to-equity-etf/ ), as of 01/29/2016,  model variable #2 has identified 2016 as a “high” risk profile year.  Thus, the model allocates from equities ( QQQ / SPY)  to cash equivalents on 02/01/2016.

The present -3.5% S&P500 loss that the model has produced for the month of January falls in line with previous and similar signaling history involving “high risk” year Januarys ( 12/31/1969 – 02/02/1970 -3.2%, 12/31/1973 – 02/01/1974 -2.5%, 12/30/1977 02/01/1978 -5.3%, 12/31/1981 – 02/01/1982 -1.9% ).

The model has identified 16 previous instances of “high”risk profile since 1924 as shown in chart below.

ScreenHunter_1131 Mar. 23 08.07