With today's little dip I was surprised at the current status of the M11 momentum and mean reversion models......both have 2 Day Alert warnings. It's hard to overemphasis how valuable this tool has been in preserving our hard fought gains ...as per yesterday's warning to avoid new longs in XIV. Just to be clear...an ALERT crossover signal does not mean sell, it means the short term trend is achanging (to use Bob Dylan's word).
As a further observation please note that the SPY/SH skew chart is at the zero line...indicating good odds for delta neutral positions and a likely momentum surge (however, not clear which direction).
Here's a
little nugget from Zero Hedge on why the Santa Claus rally might get derailed this year.
