MDM - Model moves to CASH/NEUTRAL on August 8, 2013
The MDM is switching to a cash/neutral signal as the markets are less than 1% from their peaks and it is therefore prudent to make a quick exit here rather than have to sit through a possible minor correction that could be several percent. An undercutting of the fifth distribution day would have normally be sufficient to triggered a sell signal on Wednesday, but quantitative easing (QE) has changed the nature of markets. We discuss in detail here: https://www.virtueofselfishinvesting.com/reports/view/mdm-qe-perspective.
Suffice to say, MDM may switch back to a buy signal without a confirmation day as the uptrend under QE tends to stay on track.
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