MDM - Switch to Buy

Published : December 1 2010 at 16:00 ET

The model has switched to a buy signal. The percentage moves in the indexes held up today, the volume was higher than yesterday, and enough leading stocks acted well.

That said, with all the governmental manipulation that fights against the flow of sovereign debt news out of Europe and China's tightening policies, it is not surprising that this market is screwy and volatile with all the gap-up, gap-down opens we have seen over the past couple of weeks.

We would advise buying less aggressively than normal at this time. Whether you buy a 1-times, 2-time, or 3-times ETF, perhaps a half position is warranted instead of a full one.

Precious metals are looking strong again as central banks buy when their currencies weaken, and overall, China has been on a continuous buying program of precious metals. The semiconductor group and small caps are also showing strength.


1-times: SMH, SLV, GLD, IWM


2-times: USD, AGQ, DGP


3-times: SOXL, TNA

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