8 Comments
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Artur's avatar

Thank you. Great as always. Question regarding the offensive/defensive stocks formula. Shouldn´t it be (XLK*XLF*XLB*XLI)/(XLY*XLU*XLP*XLV). Because in this form you are constructing two indices in realtion to each other. But your formula is constructing one offensice index and then in relation to each single defensice sector ETF?

FXMacroGuy's avatar

Thanks 🙏

The two are mathematically identical: (XLK*XLF*XLB*XLI)/(XLY*XLU*XLP*XLV) is the same as XLK*XLF*XLB*XLI * 1/XLY * 1/XLU * 1/XLP * 1/XLV. Remove the redundant *1’s and you end up with my formula, same result. I just prefer to write it that way.

Artur's avatar

You are right. I just did a mistake when comparing them in TV. Because of that I got two different results. My bad.

FXMacroGuy's avatar

No worries 🙂

Guilherme Attuy's avatar

Really nice work!!!

Joe Olashugba's avatar

Informative as always, great work!