MDM - Premarket update 3/11/11
The market direction model issued a sell signal on March 8 due to significant selling pressure in the NASDAQ Composite as well as in leading names.
Quantitative easing (QE) remains in effect until at least June, so if history is any guide, downside could be limited to -10% in the NASDAQ Composite. The only time since QE began that the NASDAQ corrected more than -10% was in May 2010 when QE was halted for a few months.
Begin building a list of names that hold up well during this correction. The best ones will show constructive price/volume action. As usual, we will alert members as to any buyable pocket pivots we witness among leading names.
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