The Model: The KP Trend Model is solidly Green, maximum exposure to US equities.
From the Trading Room: In last week’s missive, Werner commented on the spikes in the Red Model line, highlighting these events on the chart of the KP-1 Intermediate-Term Model. There are two other “lines” shown in this study, the blue Zero Trigger line and Grey Model Line EMA. The grey line is an exponential smoothing of the Red Model Line that plays an important role when traveling below the blue line.
The Grey EMA line moved above the blue line last December and is seen rising, pulling away from the blue line with increasing vigor, similar to that witnessed during the 2020 – 2021 market rally, a possible indication of building, longer-term momentum.
