MDM - Model switches to SELL on June 25, 2012
Today, the NASDAQ Composite broke below Thursday's lows so the model is now on a sell signal. Keep in mind that the choppy nature of the market may create whipsaw situations not just in the model's signals but also in terms of one's trading in general, so position size with care.
Suggested inverse ETFs:
RWM - Russell 2000 small cap 1x bear. It should approximate 1x the inverse of the Russell 2000.
TWM - Russell 2000 small cap 2x bear.
TZA - Russell 2000 small cap 3x bear.
EDZ - MSCI European emerging markets index 3x bear. Note, there are 1x and 2x equivalents but they are too thin so we would suggest position sizing in EDZ according to your risk tolerance levels.
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