etfmsolutions: Now Overbought...2.10.14

Monday, February 10, 2014

Now Overbought...2.10.14

It was a yin-yang day with both XIV and VIX running in the green for the first 90 minutes. Its usually a bearish sign when these divergent volatility indices are both positive and we did see some companion selling before the VIX gained the edge.

Early weakness was followed by afternoon buying but ultimately the majors were left flat although QQQ continues to outpace SPY (should be bullish).

Technically (at day 3 of the "rally") we are in an overbought state, which seems to be confired by the M3 SPY Short Term Alert.

Market watchers are poised to hear from the new FED chairman tomorrow although no new policy changes are expected.

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.

ETF Mosaic Solutions and the editors of Mosaic Solutions are neither an investment advisory service nor registered investment advisers or broker-dealers and do not purport to tell or suggest which securities or currencies readers should buy or sell for themselves.
This site and related software products are for research and educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice.

Investing is risky and past performance, whether actual or tested, is no guarantee of future results.
Any quantitatively derived allocations referenced herein should only be starting points for conducting your own research.

You are responsible for your own trading decisions and resultant gains or losses. When in doubt, please seek professional guidance from a registered adviser who can respond to your personal needs and risk profile.