MDM - Model sticks toe in water again and switches to buy on July 13, 2011
Price/volume in stocks surged as Bernanke just went on record to say that QE3 is back on the table.
Gold broke out of its consolidation on July 12 due to concerns over debt issues in Italy as well as being spurred higher by the FOMC minutes which shows some members advocating further quantitative easing. In the short run, the market could be choppy as issues in Europe knock the market down while the growing promise of more quantitative easing which pushes the market higher. That said, the issues in Europe will ultimately will lead to higher prices in commodities which include precious metals and in stocks since the issues in Europe should lead to more quantitative easing.
Given the trendless nature of 2011, a pyramiding strategy into any suggested ETFs is suggested so that you add to your position only on a price basis, which should keep your average cost under where the ETF is trading.
IWM (Russell 2000)
SPY (S&P 500)
UWM (Russell 2000)
SSO (S&P 500)
TNA (Russell 2000)
UPRO (S&P 500)
This information is provided by Virtue of Selfish Investing, LLC (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, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2013 Virtue of Selfish Investing, LLC. All rights reserved.