Thursday, May 28, 2015

Roller Coaster Ride Continues...05.28.15

There was no follow through on yesterday's strong close, presumably due to the Greece credit collapse.  The Euro was actually up but the Chinese markets plummeted (6.5% at one point).
Once again we're swimming in a sea of uncertainty with occasional whirlpools of optimism.
Here's the latest on the QQQ Ponzo update.  I'm spending a lot of time developing a couple new models based on QQQ since the QQQ forecast appears much stronger than the SPY....which is a characteristic of a bull market.  It may all end in tears but for now we're looking at a two pronged approach using a market neutral strategy (the options Butterfly band) and the LVQ incremental daily model posted yesterday.  Tomorrow I'll post the weekly version of the LVQ going back 7 years so it includes the 08-09 crash.  I think you'll see the merit of this incredibly simple system.