Checking Up On ITARR Indicators

For those investors who are either following or implementing the ITA Risk Reduction (ITARR) model, here are the latest results for the following critical ETFs:  VTI, IWN, VEU, VWO, VNQ, RWX, TIP, TLT, PCY, DBC, and GTU.  Only TLT, DBC, and GTU were priced below their respective 195-Day EMA when checked earlier this morning.  The relative positions can change so here is a link you may wish to bookmark.  Note that I provide the linkable version.

The portfolios I track are reviewed every 32 days.  This keeps me out of trouble on several fronts.

  • The wash sale is avoided should a buy or sell go into effect.  Since we are outside the 30-day limit, this potential problem is avoided.
  • When dealing with commission free ETFs, as many of the above are, we are not subjected to the $19.99 commission fee tacked on should we trade a commission free ETF within the 30-Day limit.  This applies to TDAmeritrade clients.
  • The 32-day limit rolls the portfolio review throughout the month instead of updating it at the end of the month as done by Faber and Richardson.  I think this has advantages as we are avoiding events that may occur at specific times during the month.