Tuesday, October 15, 2013

VEGA Fades, GAMMA Rises..10.15.13

Sometimes the technical algortihms know more than the left brain can digest. Today's weakness, culminating in a closing plunge were foreseen in the VEGA model and its trend reversal signals. In this climate of rising volatility there was little time for confirming signals and traders are advised to either stand clear of the potential gains and losses and just hold CASH....OR...be prepared to open and close positions quickly...which goes against the premise of the whole Mosaic concept.

While VEGA is fading the GAMMA model, with a more diverse base and wider sector exposure, has now gone positive with a focus on the international ETFs and XLU.....signalling an at least temporary avoidance of the US equity sectors. 

With Congress's deliberations stalled the economic picture is now very murky so extreme caution is advised unless time is available to pay close attention to market dynamics...and react accordingly