Correction Protection Model (CPM)

Purpose: Wealth Preservation

The Correction Protection Model is our proprietary defensive model for the S&P 500. CPM’s primary objective is to protect investor assets during stock market corrections but to otherwise remain invested, taking advantage of equity prices’ historical propensity to move higher over time. CPM is objective, data driven, and independent of the day to day price fluctuations in the major US stock indexes. CPM is binary: it is either Risk On or Risk Off. This wealth preservation tool was initially developed following the 2008 Financial Crisis, to protect investors from another similar market collapse.

More Information about the CPM

Asbury 6 (A6) Model

Purpose: Risk Management

The Asbury 6 is a combination of six diverse market metrics that were paired together to look beyond the day-to-day, up-and-down noise of the stock market to determine its actual health — in much the same way as a doctor first checks the patient’s vital signs during an office visit.  We view the A6, which is updated daily in our Research Center, as a lie detector test for the market.  It helps us to identify real, sustainable market advances or declines from computer-driven traps for investors — the latter which we believe are often generated by algorithmic trading.  These “algos” now account for about 80% of the daily volume in the US stock market, and often cause quick, sharp moves in financial asset prices that provoke people to make emotionally driven, ill-timed trading decisions at the worst possible times and places.

Sector ETF Asset Flows (SEAF) Model

Purpose: Sector Selection

The flow of money is one of the only metrics we know of that actually lead price movement.  The Sector Asset Flows Model “follows the money” to determine where investor assets are going, and where they are coming from, in US stock market sectors. This model tracks the total net assets invested in 10 sector ETFs, in 3 different time frames, to determine the best opportunities to capture outright and relative performance in the sector space.

Cross Asset Relative Performance (CARP) Model

Purpose: Domestic Asset Allocation

This model identifies which specific areas of the US financial landscape are the best performers. It pinpoints which parts of the US market, in 9 different categories including stocks vs. bonds, large cap vs. small cap, growth vs. value, US vs. emerging markets, and government vs. corporate bonds, are outperforming or underperforming from a Trading (weekly), Tactical (monthly), and Strategic (quarterly) standpoint.

S&P 500 vs. The World Model

Purpose: Global Asset Allocation

This model helps investors, who wish to diversify a portion of their stock market exposure away from the US, make sound, data-driven decisions.  It identifies which of 24 different global equity markets, which collectively represent the entire world, are outperforming the S&P 500, in 3 different time frames.

Asbury Momentum & Asbury Value Models

Purpose: Stock & ETF Selection

We use quantitative, repeatable, multi-step processes to identify individual stocks and ETFs with favorable market internals, low initial risk, and exceptional risk/reward ratios. We utilize two proprietary models: Asbury Momentum, which buys strength, and Asbury Value, which buys weakness, to scan over 6,000 US stocks and 200 ETFs after every market close to identify these opportunities.