etfmsolutions: Cautiously Optimistic...1.21.14

Tuesday, January 21, 2014

Cautiously Optimistic...1.21.14

A wild ride today as early bullish momentum was crushed into the noon hour with a modest recovery into the close. Utilities, energy and the QQQs were the relative strength leaders today and SPY momentum closed slightly positive.

An astute reader pointed out that last week's short term alerts on M3 were not as displayed in the posts. This was a mistake on my part as the posts reflected the output of a beta version of M3 that uses different parameters than the version currently held by Mosaic users. I apologize for the error...the signals produced by the version of M3 in user hands were considerably more bearish than those posted and much more reflective of the true risk environment.
Below are tonight's correct signals for SPY and QQQ.

Finally, the VEGA model showing the various relative strengths today.....

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.
Each Mosaic model is a unique blend of risk factors and must be treated accordingly.

TRENDX is a proprietary Mosaic market signal that blends volume, RSI, momentum and rate of change.

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