Wednesday, September 20, 2017

APPLE and AMAZON Ponzo ALERTS........09.20.17

With today's swoon in AAPL we may be looking at a longer term trend in the making.
At the same time AMZN looks poised to jump forward in the aftermath of Harvey, Maria et al...and we're not done yet with hurricane season.
Assuming no NOKO nukes or other apocalyptic scenarios these are the risk forecasts for APPL and AMZN as of Monday.  So far the Apple is playing out according to forecast.
Current odds favor a Long AMZN, short AAPL pair trade.
For those unfamiliar with the PONZO models, check here.


Saturday, September 16, 2017

Ponzo Updates and Trader's Outlook.....09.16.17

Forecasts are looking bullish...in fact wildly so for both SPY and QQQ, while TLT has hunkered down back into the sweet spot of our longer term buying channel (butterflies and iron condors).
VIX (not shown) has once again settled back into the 10s and the bulk of current premiums reflect a miserable risk/reward ratio.
If you believe the markets are uber overbought at this point just wait a few months for a truly frothy top that exceeds virtually all expectations from top market gurus at the beginning of 2017.
Trader's Outlook is optimistically bullish.
Hey!  What could go wrong?



Saturday, September 9, 2017

Ponzo Updates and Trader's Outlook....09.09.17

The new Ponzo forecasts for SPY and QQQ are trending into a neutral mode while TLT is once again pushing into overhead resistance ahead of a possible breakout......meaning that our hopeful scenario shown last week of a pullback to the mid linear regression channel remains unfilled and we are unvested in TLT at this time.
The effects of Harvey and Irma remain to be seen but with the level of devastation already evident in Houston and the rest of the Texas gulf coast mass destruction of  the Miami environs could mean years of recovery ahead for both regions.
A 15 foot storm surge (up to 20' projected) will put the Everglades underwater releasing all those hungey gators and some 150,000 (est.) pythons into the waterways. That's a scary thought.
Meanwhile, the NOKO situation is not improving and the likely effect will be increased volatility as the uncertainty factors rise.
Trader's Outlook is short term neutral to bearish for the coming weak based on a modest deterioration in the technical indicators coupled with concerns for tax reform and weakening economic reports..



Saturday, September 2, 2017

Ponzo Updates and Trader's Outlook......09.02.17

New Ponzo forecasts continue uber bullish themes for SPY and QQQ while TLT remains in a relatively delta neutral longer term linear regression channel (see below) with butterflies and/or iron condors high odds options setups (when TLT gets back to mid channel).
As the talking heads continue to predict market Armageddon by mid October and a risk on strategy looks fraught with danger the market maintains a slow, low volume, bullish churn.
Volatility is pulling back (once again) leaving it difficult to find even modest premium payoff situations.  Compounding this frustration is the rise of new algorithmic trading firms that account for more and more of daily market volume while confounding traditional technical analysis indicators.   After over 30 years of trading I'm finding the current markets difficult to decipher and, more importantly, difficult to find a tradeable edge.
For my own risk tolerance a delta neutral approach provides the most comfort (I like TLT).
Trader's Outlook is once again bullish.




Sunday, August 27, 2017

Ponzo Updates SPY, QQQ & TLT and Trader's Outlook...08.27.17

This week's Ponzo Updates have SPY and QQQ in a long term bullish trend.  Short term scenarios suggest the possibility of pullbacks, the current mood of  multiple market gurus and talking heads.
TLT has devolved over the past few weeks from being profoundly bullish to the current short term bearish forecast.  Regular readers know TLT is one of my favorite trading vehicles and the stable narrow channel price range we witnessed in the past is now above the upper resistance band and the odds now favor a retracement back to the range midline or the bottom band.   A butterfly option strategy still looks attractive for TLT although waiting until we get a pullback to the midline is necessary before deploying new setups.
Trader's Outlook is cautiously neutral.  Keep in mind TO's outlook is focused on strictly technical indicators.  If we consider the current multitude of geopolitical risk factors, current turmoil between Congress and POTUS, stock outflow patterns, questionable market momentum metrics and the FED's failure to follow a forward looking economic policy....then the wisdom of risk off investing is not a wise at this time.



Sunday, August 20, 2017

Ponzo Updates for SPY, QQQ & TLT + Trader's Outlook......08.20.17

This week's forecasts have changed only slightly from recent outlooks.  The SPY looks to be more susceptible to a pullback while the Qs remain bullish and TLT has adopted a wider range neutral stance. The instances of potential 5% + pullbacks have increased for SPY and QQQ.
An optimistic earnings season has managed to keep the markets in a buy the dip mood, BUT ...increasing tensions with China & NOKO internationally and a tide of anti-Trump attacks by the media may serve to destabilize an already tenuous political situation nationally.
Trader's Outlook has become cautious in anticipation of volatility rising....a reflection of the TLT forecast adjustment..



Saturday, August 12, 2017

Ponzo Updates for SPY, QQQ and TLT plus Trader's Outlook....08.12.17

This week's Ponzo updates reflect some divergence from recent forecasts.
We now have a black swan type scenario on SPY, not imminent but still looming as geo political tensions ramp up and increasingly expected volatility pops in the Fall pose a risk for vested positions.
QQQ looks slightly less optimistic than recent posts although the downturn last week really didn't impact the index significantly.  FANG stocks are increasingly at risk so keeping an eye on support levels in critical.
TLT has suddenly become significantly more bullish, moving out of its narrow range consolidation and despite numerous talking heads droning on about the impending collapse of the bond market.  
Trader's Outlook is bullish and reflects the obvious....bull trend still intact but increasing risk makes the whole investment game a precarious undertaking.
Thursday saw the biggest daily volume (and volatility) since February.  Friday's recovery was iffy both in terms of strength and volume with many likely holding their breath over the weekend waiting to see if NOKO is going to grace us with a nuclear winter or Yosemite delivers a blast to end civilization as we know it.  (readers in the Dakotas take heart....you've got good odds for survival....the rest of us are toast).