MDM - Intraday market update July 5, 2011
IBD went to a buy signal without a follow through day on July 1, 2011. They also did this in the past with negative results.
While Market Direction Model does not follow IBD, it can use a follow through day as the initiation of a new buy signal or confirmation of a prior buy signal it may have issued.
In the meantime, we are carefully watching the leaders whose action will push the model either into a buy or a sell signal.
In other areas, precious metals are in a basing pattern which is typical of this time of year. May-July are typically periods of weak demand which result in basing or downtrending patterns in precious metals. Light summer trading volume adds further to the odds of a basing pattern being traced out.
Once quantitative easing manifests as QE3 and/or in substantial quantity from other debtor areas of the globe such as the UK and Europe, stocks and commodities should be the beneficiaries.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2017 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.