Returns for week ending 8/26/11

Returns for the past week:
Model portfolio: +3.5%
Actual managed account: +0.7%

NOTE:
The model portfolio is 50% invested during periods where the DecisionPoint timing model is on a NEUTRAL signal as it has been the past several weeks. Because the market conditions were quite negative, the managed account has been in all cash for the past several weeks and began the week 100% in cash. Early last week, market iternals indicated a shift in investor sentiment, so on Wednesday morning, I moved my managed accounts' allocations from 0% invested to 25% invested.

Last week's market action was constructive to aupporting an intermediate term rally so on Monday I intend to move my managed accounts to an allocation of 50% invested.

The DecisionPoint timing model has not thrown a fresh BUY signal yet, so I will adhere to the model's target allocation of "up to 50% invested" until such time. My own expectation is that this rally will not extend beyond a few weeks and then the market will decline to put in a final bear market bottom. I am not a good predictor though, so I will follow the system rules and hope take advantage of the statistical edge it provides us.