MLR - How frustrating.... Up more than 10% on the Market Direction Model trade at one point but the trade closes at a small loss.

Published : November 29 2012 at 11:29 ET

It is always frustrating to see profits vanish, but that is the nature of 2012, a chop-slop volatile, relatively trendless market. In the model's recent sell signal, the market fell then bounced hard. Here is a recent report we sent out recently:

Indeed, frustration has been running high since 2011 among many investors with respect to general market action as 2011 and 2012 have been relatively trendless, volatile, news driven markets. To have one year of such activity is rare, but to have two years back to back is just about unprecedented. Along similar lines, the trend following wizards as a whole have been underperforming since 2011, nearly two years, which is also unprecedented.

As for those who are considering whether trend following is dead due to quantitative easing (QE), QE has been around in full measure since 2009. MDM has managed to do relatively well up until this year. Such aberrant years are extremely rare and always have come to an end. When most investors and news headlines announce the end of trend following, that is often when new trends begin. This is based on my studies of markets since the early 1900s.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.