At the beginning of 2012 I started tracking trade signals generated byMarketClub on four ETFs - SPDR S&P 500 (NYSEARCA:SPY), SPDR Gold (NYSEARCA:GLD), CurrencyShares Euro Trust (NYSEARCA:FXE), and United States Oil Fund (NYSEARCA:USO). MarketClub is a sponsor of Scott's Investments, but these trades/tests are conducted in near real-time (I typically don't have time during the day to publish the trades, so I post them in the evening). My objective is to track, out-of-sample, the effectiveness of their trade signals.
A "buy" signal was triggered today on USO at $39.89 and the hypothetical portfolio purchased 63 shares.
A "buy" signal was triggered today on SPY at $140.79 and the hypothetical portfolio purchased 18 shares.
According to MarketClub's trade triangle system FXE is somewhat neutral and GLD remains in a downtrend/sell signal. For the purposes of this portfolio we are not shorting stocks so it remains in cash on these positions.
This portfolio should be looked at more as a collection of trades, rather than a comprehensive portfolio. The positions can remain on a cash signal for weeks or months (both FXE and GLD have failed to give a buy signal in 2012), so rather than simply hold cash a real-world investor may allocate funds to other non-cash investments.
To track the historical performance and current trade performance click on the "Marketclub ETF Portfolio" on the right hand side of Scott's Investments.