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.
About Lowell

Retired physics teacher. My hobbies are photography, reading and classical music. And my latest hobby - taking care of my dog, Kipling.

Comments

  1. Ronald Boyd says:

    The Link (not the one to the article) you give takes me to iShare’s ITL charts. Is that what I should expect?

  2. Ronald Boyd says:

    Make that iShare’s TLT charts.

  3. Ronald,

    Yes, the link takes the reader to the TLT StockChart graph. You can enter any ticker to see the multiple graphs such as RSI, MACD, and CMF in addition to the basic price graph.

    Lowell

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