etfmsolutions: PONZO Updates Look Bad for Bonds...10.10.16

Monday, October 10, 2016

PONZO Updates Look Bad for Bonds...10.10.16

This week's Ponzo Updates have the VIX dead flat going forward and declining prospects for bonds.
The happy outlook for SPY that we witnessed last week has now become much more iffy with a variety of volatile outliers.
Things could change in a hurry however as earnings season kicks off with high expectations for rosy guidance in Q4. If we see some major stumbles then all bets are off.
The most surprising chart is probably the VIX and for risk tolerant traders this is the perfect forecast for put butterflies...a sample of which will be posted tomorrow.

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