DECISION MOOSE

Investment Newsletter: Stock Market & Investment Strategies

US Equity Strategy (USES) Model

A US-centric Equity Framework

The USES Model is an equity-only construct for determining the optimum equity strategy for the US stock portion of a portfolio. It monitors and ranks 9 US equity strategies (as represented by the most popular smart-beta ETFs (based on volume and capitalization) Global Index momentum methodology. The 9 US equity strategies included US momentum, US growth, US value, US low volatility, US high dividend, US fundamentals, US equal weight, US Large-cap benchmark, and US Small-caps. The USES Model rotates among the strategies — moving capital into whichever strategy shows the strongest metrics each week

How the USES Model Works

Each week the model scores all nine strategy S&P ETFs (and cash) using the same Confidence Index (CI%), Rate of Change (ROC), Technical Strength (TS+), RSI, and PMO metrics used in the Global Index Model. The top-ranked sector becomes the recommended holding. When no sector shows positive momentum, the model moves to cash (short-term Treasuries or money market). Switches are made at the open on the day following a signal change.nineand Cash

Current Investment Strategy (11/06/2026

THIS WEEK: 1st Risk-OFF week after 2 MIXED-Risk. US Stocks DOWN, Foreign Stocks MIXED, Bonds UP and Gold DOWN

The US Equity Strategy (USES) Model bought Cash (MMF) via MTUM stop-loss on 10/15/2026

CURRENT US Equity Strategy Model Signal: HOLD Cash (MMF) (The USES Model switched from US Large-caps (SPY) via stop-loss back to Cash (MMF) effective 10/15/2026 TOP USES MODEL CHOICE: The model is holding Cash since 10/15/2026 waiting for an opportunity to renter US equities. SPY is down since the switch date and triggered a third stop-loss this week with PMO going negative. Cash ahead of the US elections was a safe position and it remains so after. BEST ALTERNATIVE: US Value (IUSV) and S&P Equal Weight (RSP) both have positive CI, TS>60 (bullish+), RSI >50, and a positive PMO that is improving. Of the two, IUSV is better, but those numbers became moot when the S&P, triggered a convincing stop-loss on 11/02. Most Recent STOP: *20-d Stop-loss, **20-d Buy-stop

RankCI%METRICSROCTSREADRSIPMO+/-Condition
1100%US Momentum (MTUM)*8%14%very bearish27-3.62deteriorating
291%US Growth (IUSG)*14%34%bearish33-1.47deteriorating
379%US Large-caps (SPY)*13%49%neutral35-0.53deteriorating
474%US Fundamentals (QUAL)13%57%neutral34-0.16deteriorating
566%US Value (IUSV)12%92%very bullish470.72improving
664%S&P Equal Weight (RSP)13%80%very bullish490.68improving
758%US Small-Caps (IWM)10%33%bearish43-0.75improving
839%US High Dividend (SPYD)11%90%very bullish601.31improving
913%Cash (SGOV)2%77%bullish480.08deteriorating
105%US Low Volatility (SPLV)6%93%very bullish601.49improving

USES Performance Progression

Equal Weight holds year-to-date honors this week. High Dividend (SPYD) and US Value (IUSV) show the most promise over 13, 26, 39 and 52 weeks.

YTDPERFORMANCEThis WkLast Wk13wk26wk39wk52wk3Y
114%S&P Equal Weight (RSP)0.8%1.1%1.8%8.9%11.1%17.8%26.0%
213%US Momentum (MTUM)-1.8%-1.3%-5.8%1.5%9.6%10.9%39.6%
313%US Small-Caps (IWM)1.3%2.0%-4.4%1.5%6.2%14.3%29.8%
413%US High Dividend (SPYD)1.0%2.9%-0.6%9.0%12.4%20.6%17.5%
513%US Value (IUSV)0.6%1.1%3.2%9.1%11.6%16.4%25.4%
612%US Fundamentals (QUAL)-0.1%-0.9%2.6%7.7%9.6%13.2%26.2%
711%US Large-caps (SPY)-0.6%-0.4%2.3%6.1%9.2%10.9%33.1%
89%US Growth (IUSG)-1.3%-1.7%1.4%3.6%7.5%7.3%39.0%
97%US Low Volatility (SPLV)1.5%1.3%-0.5%4.8%6.2%11.1%10.4%
100%Cash (SGOV)0.1%0.1%1.0%1.9%2.8%3.8%8.4%

Strategy Applications

Strategic Rotatation

Rotate into the highest-momentum strategy each week, holding until a new strategy takes the top rank or the model moves to cash.

Complement to GIM

Use alongside the Global Index Model — when GIM signals US equities, the USES Model identifies which sector within US equities to favour.

Tactical Overlay

Apply as a tactical overlay on a core buy-and-hold portfolio, tilting sstrategy weights toward current momentum leaders.

Risk Management

The cash signal acts as a defensive mechanism — when no sector shows positive momentum, capital moves to safety rather than chasing weak trends.

The USES Model is provided for informational and educational purposes only. It does not constitute personalised investment advice. Past performance is not indicative of future results. Always consult a qualified financial adviser before making investment decisions.