butterfly option plays, the details of which I profiled in last year.
So, while scrolling through the components of my Telechart rotation model, I was struck by the current "situation" in XLF and EEM and decided to explore a little further.
As of Wednesday's close both XLF and EEM fired BUY signals through Project Z . . XLF with an 82% probability, EEM with an 88% probability.
Both ETFs share a similar beta (1.47 & 1.60) and both are dead on the bottom of the rotational model (ROT) components with values of -32 and -35. This low weighting in the ROT in no way reflects the potential turnaround possibilities for these 2 ETFs . . it just indicates that positive momentum as measured by the 6 period moving linear regression on 3 day bars has not yet become apparent.
If I rely on the Project Z defined momentum cycles for my entry, then I know my target exit is 8 to 12 days away, if not sooner. Tomorrow I'll take a closer look at the possibilities for a low risk spin off trade based on the "situation".