Monday, May 12, 2014

SPY/FXE Trade & More.....5.12.14

A quick look at the right side panel says it all....per Friday's close the XIV TrendX is soaring and SPY is showing that there's still room to the upside before overhead resistance is hit.
M3 is flashing the bullish XIV, SSO, SPY ranking sequence and the short term ALERT is green.  The only negative consideration for now is that volume is thin as the DOW hits a new high mid day.
There's a lot going on over on the Mosaic site including the addition of a free (for now) FX TrendX charts tab link for the Euro, the Australian dollar and the pound. (see below)
Our crack research team has been testing a variety of alternate investment scenarios and one of the most promising uses the MOSAIC enhanced Market Rewind pairs platform to trade a basket of currency ETFs when paired against SPY.
Now you could always just trade the FX markets (this generally works best for insomniacs or others who have irregular sleep patterns) but our goal is to develop live signals that can be used in the US markets during normal trading hours and which will capture the current trend and momentum of various currencies.
These are not daytrades but seek to trade with a maximum 10 day holding period.
Here's how the SPY/FXE looks over the past 6 months.  The model has only been vested for 50 days out of the last 180 so we spend most of the time on cash waiting for the momentum divergence to set up.
Tomorrow we'll show how this set up works on the yen, the Australia dollar and the Canadian dollar.