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YTD Performance: AdvantHedge -4.4%; Global AdvantHedge -3.9% 

Select Industries sold Systems Software; Global Industries bought first Energy group in almost 12 months (Oil & Gas Exploration).

Both Portfolios matched their all-equity benchmarks in May, and are outperforming YTD.

The S&P 500 gained 2.1% (price only) in May. Based on the 1957-to-date valuation metrics presented below, downside to its historical average is -13%, about 1% more than last month’s reading. The S&P Industrials downside to mean valuation (excludes Utilities and Financials) also increased slightly to -26%.

Net outflows for domestic equity mutual funds continued this week, while net inflows resumed for domestic equity ETFs.  Bond mutual funds and ETFs continued to bring in net cash.

The Major Trend Index rose 0.05 to 1.15 in the week ended May 23rd, bouncing sharply off the four-month low recorded in the prior week

The Major Trend Index fell 0.02 to 1.10 in the week ended May 16th.

Domestic equity and money market funds experienced net cash outflows this week, while all other broad categories saw net cash inflows. YTD domestic equity ETF net outflows are the largest on record when comparing to any other year through mid-May.

Despite last Friday’s close in the DJIA at cycle highs, the Major Trend Index for the week slipped 0.04 to 1.12.

Domestic equity funds saw net outflows of more than $11 billion this week, while bond funds captured almost $5 billion in net inflows. Money market funds also captured huge net inflows; this was likely attributable to the high redemptions from equity funds.

We are entering the most bearish window among the potential combinations of the Presidential Election Cycle and the Annual Cycle.

Information Technology has largest representation among Attractive groups;  only one Tech group rated Unattractive. Highlighted Attractive groups include Tech Distributors, Construction/Farm Machinery, Aerospace/Defense, and Pharmaceuticals.

The S&P 500 gained 0.6% (price only) in April. Based on the 1957-to-date valuation metrics presented below, downside to its historical average remains at 12%. The S&P Industrials (which excludes Utilities and Financials) is also unchanged at 25% downside to reach mean valuation.

The Major Trend Index remained bullish throughout the month of April, and closed the week of May 2nd at a moderate 1.16—up 0.01 from four weeks earlier.

The only Energy group rated Attractive, its score has improved for seven consecutive months.

A few measures are suggesting that investor sentiment towards EM has reached a low ebb.

We stop short of embracing any sort of fixed stock market time cycle, but it's statistically difficult to discredit certain calendar patterns.

Modern Portfolio Theory debunked: since 1989, higher price volatility has generally been penalized with lower returns across the ten market sectors.

Over the last 6-months the "asset-bubble" label has been recklessly attached to Tech stocks. But that label is not right as the "Tech" decline has been concentrated in NASDAQ Internet Index names while the broad Tech sector is near an all-time high.