etfmsolutions: Ponzo Update...07.22.15

Wednesday, July 22, 2015

Ponzo Update...07.22.15

Here's this week's update to the SPY Ponzo risk forecast and the risk profile has expanded beyond last week's wild skew. The forecast is now firmly negative longer term and is looking for a significant plunge within the next month. Keep in mind these forecasts are based on a 25 year lookback at how SPY has performed when analyzing the past 25 weeks of price action so if you believe history repeats itself then this model is for you.
I was in the doctor's office yesterday paging through the financial section of USA Today and noticed that of their 6 model portfolios Apple was the most bought and the most sold stock in all of them. So far today (midday) APPL has traded 90 million shares and SPY has traded 55 million and APPL has recovered about half of its overnight 10 point plunge. The markets are still under overbought pressure but today's action may ease a lot of that.
Don't forget that tonight is the premier of Sharknado 3 on the Sy-Fy channel, promising to be one of the true cinematic entertainment events of the year.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
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