MDM - Model switches to buy August 26, 2011
Even though Bernanke gave no word on QE3 in his speech at Jackson Hole, Wyoming, the general market may be anticipating QE3. Regardless, signs of strength in leading names such as AAPL even with yesterday's negative news about Steve Jobs leaving the company, and constructive price/volume pattern leading up to today's follow through day, has pushed the model into a buy signal.
Note, as of this writing, the volume has not exceeded yesterday's volume, but odds are that either the NASDAQ or S&P 500 or both will be up at least 1.5% with volume above yesterday's trade.
Aggressive investors could buy now. Conservative investors could wait until confirmation. Should volume fail to exceed yesterday's levels, those who bought early should reverse their position by the close back to cash.
IWM (Russell 2000)
UWM (Russell 2000)
TNA (Russell 2000)
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