etfmsolutions: PONZO Updates for SPY, VIX and TLT....04.12.16

Tuesday, April 12, 2016

PONZO Updates for SPY, VIX and TLT....04.12.16

This week's PONZO forecasts suggest an increase in SPY volatility although VIX and TLT remain in a fairly confined and low volatility channels. SPY continues to demonstrate daily ATRs > 1% which is good for delta neutral players although the technical alignment of SPY and the VIX has deteriorated to the point that the XIV/VXX relative momentum signal is now underperforming the SPY/SH signal (dollar value adjusted). This situation is a bit worrisome since its hard to reconcile a volatile SPY with a benign VIX.
Short term the outlook is neutral (no large breakouts/breakdowns anticipated) as long as prices stay within our bullish/bearish brackets.

Commentary and Updates

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