I been fooling around with the Ponzo Time Machine model recently based on its uncanny ability to forecast the short term path of the markets for the past 2 years. I've added some of the Mosaic momentum routines to further filter the historical data and deliver a support/resistance forecast looking out 14 to 60 days. Note that I've added the strike bands for a 60 day butterday for option players. I've talked about the butterfly before, a 3 leg option play with absolutely defined risk.
What is surprising to me is the rather over the top bullish scenario forecast by the Ponzo. Keep in mind this model looks at what happened during the past 25 weeks over a 25 year lookback and then projected the most likely historical repeat for the next 18 weeks. Just something to consider.
