etfmsolutions: PONZO Updates and XLE MOD....04.05.16

Tuesday, April 5, 2016

PONZO Updates and XLE MOD....04.05.16

This week's SPY and VIX Ponzo forecasts essentially favor a neutral stance at least short term. The VIX in particular looks fairly benign and, as mentioned yesterday, earnings season will be the near term market dynamic. The SPY chart looks a bit more risky than we're actually likely to experience but keep in mind these scenarios are just reflections of what happened over the past 25 years when SPY was in the current cycle.
I've profiled the XLE MOD dashboard to illustrate what types of high linearity returns this type of multiple pairs analysis can produce. This particular mix of XLE based pairs covers the gamut of XLE linked associations and delivers a nice consistent signal, so far. It would be more attractive if we saw a higher number of AP signals but once again patience is the watchword and we'll just standby until the AP signals dominate...that's the time to scale up trade size.

Commentary and Updates

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