MDM - Model switches to BUY on May 13, 2014
The MDM has switched to a BUY signal. The S&P 500, DJIA, and a number of European bourses have reached new highs as of the last two days. Quantitative easing has pushed markets higher since 2009, though less so in today's market as the markets seem exhausted. Nevertheless, with new highs being reached on the S&P 500, the model is switching to a buy. Position size carefully as price/volume shows markets and a number of leading stocks have shown pronounced weakness for much of this year, so this signal may be short lived as the MDM remains nimble.
The Fed has said it will continue to print money for an extended period after lowering their target unemployment rate. Thus QE remains on nearly full bore across global central banks, so the saying "Dont fight the fed" should read more like "Dont fight the feds." That said, fake wealth creation comes at a cost but this major market top may be further off than one thinks.
SPY (S&P 500)
SSO (S&P 500)
UPRO (S&P 500)
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