etfmsolutions: GAMMA Update..10.6.13

Sunday, October 6, 2013

GAMMA Update..10.6.13

The markets continue to churn as concerns over the funding block and now the impending debt ceiling cloud the economic crystal ball. As in previous periods of high uncertainty the opportunities in the market are focused on individual stocks rather than portfolio momentum and as a result we are likely to see a continuing pattern of near hits and misses off short term support/resistance levels until the political morass becomes somewhat clearer.

The looming debt ceiling has extremely serious implications if not resolved in a timely manner. The whipsaws that we are seeing in the equity and world models (ALPHA and WORLD) also extend to GAMMA, the volatility based model, where the extremes of the spectrum XIV AND SH have shifted their position in the #11 slot in a single day. Meanwhile SPY continues to ride the #6 slot, the momentum fulcrum, further suggesting that it is the market outliers that represent the best investment choices for now.

With XIV out of the #1 slot we are actually seeing some equity line improvement based on EEM snd QQQ and the short term ALERT is close to a VESTED signal...but not yet.

Commentary and Updates

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