MTI Drops To 0.79

The Major Trend Index dropped 0.13 points to a ratio of 0.79 using data through January 8th. Several trend-following sub-models confirmed what our other "anticipatory" tools have been telling us for many months: a cyclical bear market is underway. Bearish market action to open 2016 has driven our tactical funds’ net equity exposure down to the 34-35% range. We’ll consider covering a portion of the equity hedge if evidence of a short-term low appears.