etfmsolutions: Ponzo Forecasts Level Volatility With One Big IF....02.02.16

Tuesday, February 2, 2016

Ponzo Forecasts Level Volatility With One Big IF....02.02.16

This week's SPY and VIX forecasts are not optimistic for the bulls. We're seeing much the same outlook as last week with added caveat of a new washout signal scenario on the SPY and VIX.
Oil continues to dominate the markets' uncertainty as China has taken on a distinctly avoid at all costs status in the bulk of trader's minds.
Strategically it's one day at a time and in all honesty its difficult to rationalize any big directional positions in this frothy environment as the consequences of a bad move could be huge.
Delta neutral plays have produced good results recently and the risk/reward ratios are much superior to directional trading for now.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
Posts feature Mosaic model updates including delta neutral stops, VIXEN directional trades and PONZO forecasts.

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