etfmsolutions: T2 Update...5.29.13

Wednesday, May 29, 2013

T2 Update...5.29.13

The markets are acting fickle this morning with > 1% drops in most of the X sector ETFs, except XRT and XLF, which is only down 3 tenths of a percent. Nevertheless we are seeing a strong momentum reversal based on technical resistance levels and uncertainty about the longevity of the FED's buying program.

The situation with the VIX mentioned yesterday was a telltale that something was not right with the bullish action and today bears witness. The VIX is up 7% as of 90 minutes in.
Bonds took a tremendous hit yesterday but are showing some modest recovery today. The 4 lowest ranked ETFs.. IEF, TLT, XLU and GLD continue to falter although all are overdue for a bounce. XLU...which had been the darling of several of the model portfolios is now profoundly downslope.

Despite yesterday's pop the 4 month P6 has been downslope since the May 20, which was a sign to move to cash and defer any new positions.

Note the action on the SPY TrendX chart in the right hand panel >>>>>>>

Click once on chart to clarify and enlarge

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.

NOTE: Posted risk exposure indicators, signals and metrics apply to Mosaic models only. They are not directly correlated with price movement in the major market indices and can not be used to forecast directional changes in those instruments.
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TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

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