Sell off is over? Buy NDX and short INDU

The "sell in the summer" signal only lasted for two days. The model has reversed the signal to long NDX and short INDU, which implies that US equity markets are likely to go up in the near future.

The open and close time have been corrected, but results are same.

Sell in the summer: Long INDU and short NDX

The just closed signal lasted longer than expected. However, it has generated 1.2% in ETF trading, 2.06% in long-only position, and 4.2% in the leveraged future trading.

The current signal is to long INDU and short NDX, which means the US equity market is likely to drop in the near future.

Waiting for another bull run

We are still holding the positions of long NDX and short Dow Jones, and gaining 0.8%, or $800 per future contract pair. The NDX is still up 0.7% since April 30. It's likely that there will be another bull run before we short NDX and long INDU, i.e. shorting the market.