The August and YTD returns and selections for September for the automated models are as follows:

Sector Model

August return       -.69%

2008 YTD return   +9.9%

The sector model is taking the hedges off this month as DOG and SH are replaced with SWH and ITB.  

September positions are 20% each: BDH, IBB, IHI, ITB, SWH


Country Model

August return       +.99%

2008 YTD return   -7.81%

The country model is unchanged from last month.  It remains to hold EFZ along with 4 slots in cash.

September positions are: 20% EFZ and 80% cash.


Currency Model

August return       -1.77%

2008 YTD return   +5.69%

The currency model was hurt by real weakness in the British Pound (fxb) and the inability of the Mexican Peso (FXM) to pick up the slack.   UUP remains as the sole position. 

September positions are:  UUP 33% and 67% cash.


Paired Index Model


August return       +1.12%

2008 YTD return   +17.27%

No changes from last month as the spread play (long small caps and short tech) worked to post a nice low volatility gain. 

September positions are:  IWM 50% and PSQ 50%


Overall Model


Overall Model Mix is 30% Sector, 30% Paired Index, 20% Country, and 20% Currency

August return        -.02%

2008 YTD return    +8.24%


The overall model remains in a defensive posture with 45% long equity ETFs, 19% inverse equity ETFs, 6.67% long US Dollar ETF, and 29.33% cash.