MDM - Model switches to sell on November 10, 2011
The model has switched to a sell signal. Lackluster rallying on the part of leading stocks and major indices greatly increase the odds that the market will head lower. While quantitative easing is an important factor to lifting markets, many leading stocks are acting poorly such as AAPL and BIDU and former leaders have imploded such as GMCR and NFLX. Markets tend to drop faster than they rise, so the model sees an opportunity here to buy inverse ETFs.
Suggested inverse ETFs:
RWM - Russell 2000 small cap 1x bear. It should approximate 1x the inverse of the Russell 2000.
PSQ - NASDAQ-100 1x bear. It tracks 1x the inverse of the NASDAQ-100.
XLF - Financial Select Sector Index 1x bear. Since banks are getting squeezed due to "Operation Twist", and banks in Europe are even worse off, this ETF has been one of the weakest to date.
TWM - Russell 2000 small cap 2x bear.
QID - NASDAQ-100 2x bear.
SKF - Financial Select Sector Index 2x bear. Since banks are getting squeezed due to "Operation Twist", and banks in Europe are even worse off, this ETF has been one of the weakest to date.
TZA - Russell 2000 small cap 3x bear.
SQQQ - NASDAQ-100 3x bear.
FAZ - Financial Select Sector Index 3x bear. Since banks are getting squeezed due to "Operation Twist", and banks in Europe are even worse off, this ETF has been one of the weakest to date.
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