Thursday, June 5, 2008

EurOil Index: is it time for a model update?

The gap in the cumulative return between the rotation model and oil is closing, although the strategy still outperforms oil. The model used is very simple and has been robust for 28 weeks, as of today, but the possibility of a model update seems to be increasing.

On the other hand the trend prediction that was made on April, for a fall in oil prices, is materializing and by next week I will be presenting comparative graphs to see if that trend prediction was right!

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