etfmsolutions: Trap Door Opens...06.13.15

Saturday, June 13, 2015

Trap Door Opens...06.13.15

The dreaded Trap Door, which I had suspected was lurking in the background until Friday, did in fact spring open on Friday ostensibly on breakdown of the Greece bailout program (that's getting to be an old story). Next Wednesday we have another FED day so volatility will likely spike until then as traders assume proactive and defensive positions against any possibly change in FED policy. Meanwhile, yields are up, 30 year bonds are falling like a stone and equities are displaying what might be considered a developing head and shoulders patter (see 2 hour chart below). The SPY VDX looks pretty ugly in terms of risk and is now downslope. Per the 2 hour chart SPY support in down where we defined it earlier in the week...around 207.50. Keep in mind June is historically the worst performing month of the year and we're only half way through it.
Regarding the Mosaic models> the 3 day low model was the winner for the week with a gain of 1%.

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.