January 2012 Portfolio Update

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I don't have anything to show for January results, this time.  The XIU timing model was below its 200-day moving average for the month.  Until the XIU crosses above the 200-day moving average, there is nothing to count, year-to-date.  My personal results are flat.  According to my calculations, the TSX is up 4.16 percent at the end of January.  I have some catching up to do, but after the bee-line higher the markets have made since the middle of December, I expect at least a small correction, shortly.

If you read my December portfolio update, then you will know I started off this rally in a Materials Exchange Traded Fund (ETF), but the volatility quickly stopped me out.  It turns out, it was a poor choice, because I missed out on a nice gain made by even less volatile ETF's.

As for this time of year, Materials, and Financials are in their strong season.  Energy will be, by the end of the month.  It seems a lot of analysts are talking about technology stocks, but we have just passed the part of the year when they are strongest, so I am waiting until later in the year, after the market has pulled back, again.

Are you optimistic, or pessimistic regarding the markets?