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O. Young Kwon
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O. Young Kwon, NYU Ph.D. in Economics had worked in securities industry for ten years as a Registered Investment Adviser. He taught Macroeconomics and Statistics. Prior to his academic career, he was an Economist/Bank Supervisor at the Bank of Korea (the Fed's counterpart). In 2009 he set up the... More
  • The Daily TANER Momentum (DTM) (Jan 26, Monday) (III)

    The TANER ETF Model (TEM), The TANER Stock Model (NYSE:TSM), The TANER Rotation Model (TRM), and The TANER Vanguard Model (TVM]) The TANER Charles Schwab Model (NYSEARCA:TWM), were introduced in my article. Link:seekingalpha.com/article/817551-the-red-...

    The Daily TANER Momentum (DTM) (Jan 26, Monday)

    TANER Momentum ™ List on Jan 26, Monday based upon Closing Prices on Dec. 23, Friday

    The TANER ETF Model (TEM) (Jan 26, Monday)

    ETF:T1 (PHB PFM) A1 (VPU VNQ) E1 (VAW VDE) R1 (VHT VWO)

    ETF T2 (PHB PFM A2 (VPU VNQ) E2 (VTI VAW) R2 (BND VHT).

    ETF T3 (PFM PHB) A3 (VPU QQQ) E3 (VTI PGF) R3 (VXF XLF.

    SUMMARY OF THE TEM

    E.TM. 1-2-3 (PFM PHB) E.TM. 1-2 (VPU VNQ VAW VHT) E.TM. 2-3 (NYSEARCA:VTI) E.TM. 1 (VDE VWO) E.TM. 2 (NYSEARCA:BND) E.TM. 2 (SPY QQQ PGF VXF XLF)

    The Vanguard ETF Model (TVM) (Jan 26, Monday)

    VANGUARD T1 (BND VIOO A1 (VCIT BIV) E1 (VTV VIG) R1 (VWO BSV)

    VANGUARD T2 (BNDX BND) A2 (VXF VFH) E2 (VCIT VWO) R2 (VB VDE).

    VANGUARD T3 (BNDX BND) A3 (VUG VXF) E3 (VCIT BSV) R2 (VGK VDE).

    SUMMARY OF THE TVM

    VANGUARD 1-2-3 (BND VCIT) VANGUARD 1-2 (NYSEARCA:VWO) VANGUARD 1-3 (NYSEARCA:BSV) (VANGUARD 2-3 (BNDX VXF) VANGUARD 1 (NYSEARCA:VOO) BIV VTV VIG) VANGUARD 2 (VFH VB) VANGUARD 3 (VUG VGK)

    The Schwab ETF Model (TWM) (Jan 26, Monday)

    SCHWAD:T1 (SPLV SCHX) A1 (SCHR SCHP) E1 (SCHP FNDX) R1 (SCHE SCHC)

    SCHWAD:T2 (SPLV SCHM) A2 (SCHR SCHA) E2 (FNDX RYF) R2 (SCHP SCHO)

    SCHWAD:T3 (SCHZ SCHD) A3 (SCHB FNDA) E3 (SCHR SCHO) R3 (SCHP SCHF)

    SUMMARY OF THE TEM

    SCHWAB 1-2-3 (SCHR SCHP) SCHWAB 1-2 (SPLV FNDX) SCHWAB 1-3 (NYSEARCA:SCHD) SCHWAB 2-3 (NYSEARCA:SCHO) SCHWAB 1 (SCHX SCHE SCHC) SCHWAB 2 (SCHOM SCHA RYF) SCHWAB 3 (SCHZ SCHB FNDA SCHF)

    The TANER Rotation Model (TRM) (Jan 20, Tuesday)

    ROTATION:T1 (ITM XSD A1 (EDV PCY) E1 (KIE KCE) R1 (SLV EEM)

    ROTATION T2 (IYH PSK) A2 (EDV VCR) E2 (PCY HYG) R2 (KCE KRE).

    ROTATION T3 (RWR IYM) A3 (IYH MTK) E3 (GLD SLV) R (KCE KRE).

    SUMMARY OF THE TRM

    R.TM.1-2-3 (NYSEARCA:KCE) R.TM.1-2 (EDV PCY) R.TM.1-3 (IYM SLV) R.TM.2-3 (IYH KRE) R.TM.1 (XSD KIE EEM) R.TM.2 (PSK VCR HYG) R.TM.3 (RWR MTK GLD)

    The TANER Stock Model (TSM) (Jan 20, Tues day)

    STOCK T1 (AET KRFT) A2 (NVR JNJ) E1 (CME MCD) R1 (BA FCX)

    STOCK T2 (AET BIDU) A2 ((HD PRGO) E2 (KSU NFLX) R2 (YUM NUS).

    STOCK T3 (ISRG KRFT) A3 (CMG PRGO) E3 (DE SU) R3 (YUM AMZN).

    SUMMARY OF THE TSM

    S.TM.1-2 (NYSE:AET) S.TM.1-3 (NASDAQ:KRFT) S.TM.2-3 (PRGO YUM) S.TM.1 (NVR JNJ CME MCD BA FCX) S.TM.2 (BIDU HD NFLX NUS) S.TM.3 (ISRG CMG DE SU AMZN)

    Note:

    T (Topping): Leading Leaders.(LDLD)

    A (Advancing): Lagging Leaders (LGLD)

    E (Emerging): Leading Laggards (LDLG)

    R (Reversing): Lagging Laggards.(LGLG)

    The numbers in parentheses (1-2-3) are one-month, two-month, and three-month terms.

    The overall markets (DJIA, S&P 500, or NASDAQ) have their cycles. Individual securities (ETFs or Stocks) have also their own cycles given the market cycles. In general, all securities in The TANER System (20 ETFs and 40 stocks) show their own cycles from R to E to A to T to R and so on, but majority securities (60% of ETFs and 80% of stocks are in N (Neutral, meaning residual). Therefore all securities do not show any pattern. When any of your holding has T or R momentum, you pay your particular attention.

    Introduction

    O. Young Kwon, NYU Ph.D. (Economics) had worked in securities industry for ten years as a Registered Investment Adviser. In 2009 he set up the TANER System in order to synthesize performances and relative strengths of 20 ETFs and 40 equities thoroughly. The System captures dynamics of momentum changes of individual securities on the daily basis. The System also builds successfully their momentum trends over time.

    How to Use TANER Momentum (NYSE:TM)

    Every marketday buys, sells, or exchanges (among mutual funds) can be made by TM. All trades except exchanges are posted on StockTalks to share these trades with you. For options players (for me options are excluded) call/put positions can be taken. My experience for three years propose following two Risk/Reward Tables: The Long-Term RR (LTRR) Table and The Short-Term RR (STRR) Table. . Please use this as a guide.

    LTRR (For Long-Term Investors)

    TANER

    RISK

    REWARD

    T (TOPPING)

    HIGHER

    LOWER

    A (ADVANCING)

    HIGH

    LOW

    n (neutral)

    average

    average

    E (EMERGING)

    LOW

    HIGH

    R (REVERSING)

    LOWER

    HIGHER

    Try Advancing (NYSE:A) and Emerging (NYSE:E) TM.

    STRR (For Near-Term Traders)

    TANER

    RISK

    REWARD

    T (TOPPING)

    HIGHER

    HIGHER

    A (ADVANCING)

    HIGH

    HIGH

    n (neutral)

    average

    average

    E (EMERGING)

    LOW

    LOW

    R (REVERSING)

    LOWER

    LOWER

    Try Advancing (A) or Topping (NYSE:T) TM. When a very near term (i.e. daytrading), Topping (T) TM.

    What for R (Reversing)? These TM are useful either for your exits of any holding or your bets in a stable upswing. Sometime R gives you a big gain.

    T (Topping) sometimes help you to take gains with the intraday 5%+ rule.

    Related Instablogs

    Go TANER: The Market Primer

    Autopilot Portfolio: TANER APP (NYSE:I)

    Income Portfolio: TANER APP (II)

    The Tiger Rule: TANER APP (NASDAQ:III)

    Daytrading: TANER APP (IV)

    The TMT (TANER Momentum Trend)

    Jan 26 6:48 AM | Link | Comment!
  • The Daily Market Information (DMI) (Jan. 26, 2015, Monday) B

    ABOUT The DMI (Daily Market Information)

    Investing is a zero-sum game, meaning when one guy gains, the other guy must lose. In order to win, what must we do? The DMI might help you to have an edge over the other guys. There is too much market information on SA, TV, Newspapers, magazines, etc. The problem is there is too much info to absorb. That's why DMI is brief and well-selected.

    My focus is primarily on news about two areas: The Fed policy and Business Cycles. These are macro topics. DMI is a summary of what I listen to BBR, and read WSJ, Reuters, Bloomberg, AP, and Barons (weekend) from 5:a.m. to 7:00 a.m. everyday.

    With this information and the RED Spread (introduced in my article. Link: www.seekingalpha.com/article/817551) you can grasp the current market situation.

    The Daily Market Information (DMI) (Jan. 26, 2015, Monday)

    Bloomberg

    Tsipras Forges Anti-Austerity Coalition EU Challenge. http://www.bloomberg.com/news/2015-01-26/tsipras-forges-anti-austerity-coalition-in-eu-challenge.html

    Prices in Europe Continue to Sink, Showing Why Draghi Had to Act. http://www.bloomberg.com/news/2015-01-26/draghi-s-justification-laid-bare-with-euro-area-prices-sinking.html

    U.K Consumers Push Back Against Drag From European Weakness. www.bloomberg.com/news/2015-01-25/u-k-co...

    Reuters

    Far-left victory in Greece bruises European markets. http://www.reuters.com/article/2015/01/26/us-markets-global-idUSKBN0KY13020150126

    IMF's Lagarde rules out special treatment for Greece. www.reuters.com/article/2015/01/26/us-gr...

    The Daily Market Information (DMI) (Jan. 25, 2015, Sunday)

    Morningstar

    Will Housing Heat Up in 2015 www.morningstar.com/cover/videocenter.as...

    Rebalancing Meathods Run the Gamut. news.morningstar.com/articlenet/article....

    The Daily Market Information (DMI) (Jan. 24, 2015, Saturday)

    Bloomberg

    Euro-Area Economy Set to Pick Up as QE Plan Bolsters Confidence. www.bloomberg.com/news/2015-01-23/euro-a...

    Market Watch

    Stock market's fate depends on the next six days. www.marketwatch.com/story/stock-markets-...

    Morningstar

    A Big Band-Aid, but No Cure for Europe. news.morningstar.com/articlenet/article....

    The Daily Market Information (DMI) (Jan. 23, 2015, Friday)

    Bloomberg

    Leading Indicators in U.S.Climb for Fourth Straight Month. www.bloomberg.com/news/2015-01-23/leadin...

    Sales of Existing Homes in U.S. Rise Less Than Forecast. www.bloomberg.com/news/2015-01-23/sales-...

    Reuters

    Oil jumps as Saudi king's death feeds market uncertainty. finance.yahoo.com/news/oil-jumps-saudi-k...

    Asia equities surge on ECB boost, euro near 11-year low. finance.yahoo.com/news/stocks-cheered-ec...

    The Daily Market Information (DMI) (Jan. 22, 2015, Thursday)

    Bloomberg

    Draghi Is Pushing Boundaries of Euro Region With QE Program. http://www.bloomberg.com/news/2015-01-22/draghi-reaches-rubicon-for-euro-region-with-qe-decision-imminent.html

    Central Banks Step Up Low-Inflation Fight as Canada Cuts Rate. www.bloomberg.com/news/2015-01-21/centra...

    Reuters

    ECB to decide on bond-buying plan for reviving euro zone economy. http://www.reuters.com/article/2015/01/22/us-ecb-policy-idUSKBN0KU2ST20150122

    U.S. funds differ on managing tax liability as capital gains surge. http://www.reuters.com/article/2015/01/22/us-funds-gains-taxes-idUSKBN0KV0EV20150122

    Morningstar

    Where Are Top-Anywhere Managers Going? http://news.morningstar.com/articlenet/article.aspx?id=680586

    Market Watch

    How Mario Draghi and the ECB could disappoint. www.marketwatch.com/story/why-mario-drag...

    Jan 26 5:49 AM | Link | Comment!
  • Update: The Performance Of A Vanguard Index Portfolio With Dual Controls (November 21, 2014)

    On Oct. 31, 2014 the Bank of Japan lifted global markets all together, and so did a somewhat coordinate actions of the central banks of China an the Eurozone on November 21, 2014.

    • The S&P 500 index and the Dow Jones industrials were closed at 2,063.50 and 17,810.56, respectively, making their record, and so did our Portfolio.
    • The Markets has become quiet and much less volatile in November, compared with those in October.
    • Another distinguishable market activity is that stocks and bonds have been quite often coupled, meaning both moving in the same direction. When stock move higher, bonds also rose due mainly to increasing global demand, induced by widening yield gaps. Stocks and bonds have advanced forth day in a row now.
    • The performance of our Portfolio has underperformed S&P 500 (without dividends) by 1.06 %. But a 3-week 1.17% (or an annual 20%) gain is satisfactory.
    • The current targets of The Asset-Allocation (A-A) Decision and The Cash-To-Capital (C/C) Ratio are a 75:25 and a 10%, respectively. The C/C Ratio is a near-term (a few weeks) control while The A-A Decision is a short-term (a few months) control. These two controls have worked out over October and November.

    Four Tables are followed:

     

    Table 1: Exchange of Vanguard Mutual Funds

         
     

    DATE

    FROM

    TO

    NOTE

     

    10/14/2014

    VBILX ($BIV) (13.6)

    VTSAX ($VTI) (3.07%)

    Oil Dropped

     

    VEXAX ($VXF) (3.07%

     

    VBTLX ($BND) (7.46%)

      
     

    VBIRX ($BSV) (20.1)

    VIGAX ($VUG) (1.0)

     

    VSMAX ($VB) (1.0)

     

    VGELX ($VDE) (2.1)

       
     

    10/15/2014

    VVIAX ($VTV) (3.1%)

    VTIAX ($VXUS) (3.1%)

    Stocks Plunged

     

    VFIAX ($VOO) (7.3%)

    VTIAX ($VXUS) (0.8%)

     

    VIGAX ($VUG) (3.3%)

     

    VSMAX ($VB) (3.2)

     

    VAIPX (NYSEARCA:TIP) (13.2%)

    VTSAX ($VTI) (1.0%)

     

    PMM (cash) (12.2%)

     

    10/16/2014

    PMM (cash)(1.0%)

    VEXAX ($VXF) (1.0%)

     
     

    10/17/2014

    PMM (cash)(2.0%

    VTSAX ($VTI) (1.0%)

     
     

    VEXAX ($VXF) (1.0%)

     
     

    10/29/2014

    VDADX ($VIG) (1.0%)

    PMM (cash)(1.0%)

    Rebalancin

     

    10/30/2014

    VDADX ($ViG) (1.0%)

    PMM (cash)(1.0%)

     
     

    10/31/2014

    PMM (cash)(2.0%)

    VBTLX ($BND) (1.0%)

    Stocks Surged

     

    VTABX ($BNDX) (1.0%)

     
     

    11/6/2014

    VDADX ($ViG) (1.0%)

    PMM (cash)(1.0%)

     
     

    11/21/2014

    VDADX ($ViG) (1.0%)

    PMM (cash)(1.0%)

     
         

    Note1 : The Vanguard Mutual Fund

     

    SYMBOL

    ETF

    NAME

     
     

    VBILX

    BIV

    Vanguard Intermediate-Term Bond Fund

     

    VBIRX

    BSV

    Vanguard Short-Term Bond Fund

     
     

    VTSAX

    VTI

    Vanguard Total Stock Market Fund

     

    VEXAX

    VXF

    Vanguard Extended Stock Market Fund

     

    VBTLX

    BND

    Vanguard Total Bond Fund

     
     

    VIGAX

    VUG

    Vanguard Groeth Fund

     
     

    VSMAX

    VB

    Vanguard Small-Cap Fund

     
     

    VGELX

    VDE

    Vanguard Energy Fund

     
     

    VVIAX

    VTV

    Vanguard Value Fund

     
     

    VTIAX

    VXUS

    Vanguard International Stock Fund

     

    VFIAX

    VOO

    Vanguard S&P 500 Fund

     
     

    VAIPX

    (TIP)

    Vanguard Treasury Inflation Protection Securities Fund

     

    VDADX

    VIG

    Vanguard Dividend Appreciation Fund

     

    VTABX

    BNDX

    Vanguard World Except U.S. Stock Fund

         

    Note 2: TIP is not Vanguard ETF. It is iShares TIPS Bond ETF

    Table 2: The A-A Decision, The C/C Ratio, & The S&P 5oo

          
     

    A-A DECISION

    C/C

    S&P 500 Stock

    DATE

    STOCKS

    BONDS

    RATIO

    INDEX

    %CH

    10/31/2014

    74%

    26%

    8.6

    2,018.05

     

    11/3/2014

    75%

    45%

    8.6

    2,017.81

    0.0%

    11/4/2014

    74%

    26%

    8.6

    2,012.10

    -0.3%

    11/5/2014

    74%

    26%

    8.6

    2,023.57

    0.6%

    11/6/2014

    73%

    27%

    9.6

    2,031.21

    0.4%

    11/7/2014

    73%

    27%

    9.5

    1,877.70

    -7.9%

    11/10/2014

    73%

    27%

    9.5

    1,860.49

    -0.9%

    11/11/2014

    73%

    27%

    9.5

    1,862.76

    0.1%

    11/12/2014

    73%

    27%

    9.5

    1,896.76

    1.8%

    11/13/2014

    73%

    27%

    9.5

    1,904.01

    0.4%

    11/14/2014

    73%

    27%

    9.5

    1,941.28

    1.9%

    11/17/2014

    73%

    27%

    9.5

    1,927.11

    -0.7%

    11/18/2014

    73%

    27%

    9.5

    1,900.42

    -1.4%

    11/19/2014

    73%

    27%

    9.5

    1,964.58

    3.3%

    11/20/2014

    73%

    27%

    9.5

    1,961.63

    -0.2%

    11/21/2014

    73%

    27%

    10.4

    1,985.05

    1.2%

    Table 3: Performance Comparison: Portfolio vs. S&P 500 Stock Index

            
     

    Portfolio

    S&P 500

    Perf

    DATE

    9/30 = 100

    % ch

    Cum % Ch

    INDEX

    % ch

    Cum % Ch

    Diff

    10/31/2014

    100.00

      

    2,018.05

       

    11/3/2014

    99.73

    -0.27%

    -0.27%

    2,017.81

    -0.01%

    -0.01%

    -0.26%

    11/4/2014

    99.24

    -0.49%

    -0.77%

    2,012.10

    -0.28%

    -0.30%

    -0.47%

    11/5/2014

    99.60

    0.37%

    -0.40%

    2,023.57

    0.57%

    0.27%

    -0.67%

    11/6/2014

    99.87

    0.27%

    -0.13%

    2,031.21

    0.38%

    0.65%

    -0.78%

    11/7/2014

    100.11

    0.24%

    0.11%

    2,031.90

    0.03%

    0.68%

    -0.58%

    11/10/2014

    100.26

    0.15%

    0.26%

    2,038.26

    0.31%

    1.00%

    -0.74%

    11/11/2014

    100.34

    0.08%

    0.34%

    2,039.68

    0.07%

    1.07%

    -0.73%

    11/12/2014

    100.32

    -0.03%

    0.31%

    2,038.25

    -0.07%

    1.00%

    -0.68%

    11/13/2014

    100.07

    -0.25%

    0.06%

    2,039.33

    0.05%

    1.05%

    -0.98%

    11/14/2014

    100.25

    0.18%

    0.25%

    2,039.82

    0.02%

    1.07%

    -0.83%

    11/17/2014

    100.00

    -0.25%

    0.00%

    2,041.32

    0.07%

    1.15%

    -1.15%

    11/18/2014

    100.43

    0.43%

    0.43%

    2,051.80

    0.51%

    1.66%

    -1.23%

    11/19/2014

    100.23

    -0.20%

    0.23%

    2,048.72

    -0.15%

    1.51%

    -1.28%

    11/20/2014

    100.63

    0.41%

    0.63%

    2,052.75

    0.20%

    1.70%

    -1.07%

    11/21/2014

    101.18

    0.54%

    1.17%

    2,063.50

    0.52%

    2.23%

    -1.06%

            

    Note: The percent change formula: 200*(B-A)/(B+A)

    Table 4 Vanguard Mutual Fund Allocation.

           

    Vanguard Mutual Fund

    DATE

    SYMBOL

    ETF

    10/13/2014

    10/15/2014

    10/31/2014

    11/17/2014

    11/21/2014

    VMMXX

    PMM

    0.0%

    12.0%

    8.6%

    9.5%

    10.4%

    VTSAX

    VTI

    8.1%

    12.2%

    13.5%

    13.6%

    13.7%

    VEXAX

    VXF

    3.9%

    11.2%

    13.6%

    13.6%

    13.6%

    AFIAX

    VOO

    7.2%

    0.0%

    0.0%

    9.0%

    9.0%

    VIGAX

    VUG

    5.2%

    9.5%

    9.5%

    9.8%

    9.9%

    VSMAX

    VB

    4.7%

    9.1%

    9.4%

    9.4%

    9.4%

    VVIAX

    VTV

    3.3%

    0.0%

    0.0%

    0.0%

    0.0%

    VGELX

    VDE

    8.5%

    10.4%

    10.4%

    10.4%

    10.4%

    VDADX

    VIG

    10.0%

    10.0%

    8.2%

    7.3%

    6.4%

    VTIAX

    VXUS

    6.3%

    9.5%

    9.5%

    9.3%

    9.4%

    VTLX

    BND

    6.3%

    9.7%

    10.0%

    10.1%

    9.9%

    VTABX

    BNDX

    6.3%

    0.0%

    7.0%

    7.0%

    6.9%

    VAIPX

    (TIP)

    13.1%

    0.0%

    0.0%

    0.0%

    0.0%

    VBILX

    BIV

    13.0%

    0.0%

    0.0%

    0.0%

    0.0%

    VBIRX

    BSV

    4.1%

    6.4%

    0.0%

    0.0%

    0.0%

    TOTAL

    100.0%

    100.0%

    100.0%

    100.0%

    100.0%

           

    Note 1: The Vanguard Mutual Fund

    SYMBOL

    ETF

    NAME

    VMMXX

    (NYSE:PMM)

    Vanguard Prime Money Market Fund

    VTSAX

    VTI

    Vanguard Total Stock Market Fund

    VEXAX

    VXF

    Vanguard Extended Stock Market Fund

    AFIAX

    VOO

    Vanguard S&P 500 Fund

    VIGAX

    VUG

    Vanguard Growth Fund

    VSMAX

    VB

    Vanguard Small-Cap Fund

    VVIAX

    VTV

    Vanguard Value Fund

    VGELX

    VDE

    Vanguard Energy Fund

    VDADX

    VIG

    Vanguard Dividend Appreciation Fund

    VTIAX

    VXUS

    Vanguard International Stock Fund

    VTLX

    BND

    Vanguard Total Bond Fund

    VTABX

    BNDX

    Vanguard World Except U.S. Stock Fund

    VAIPX

    (TIP)

    Vanguard Treasury Inflation Protection Securities Fund

    VBILX

    BIV

    Vanguard Intermediate-Term Bond Fund

    VBIRX

    BSV

    Vanguard Short-Term Bond Fund

           

    Note 2: PMM is Prime Money Market Fund which is cash

    Nov 23 4:50 PM | Link | 1 Comment
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