MLR - PMP 1/13/15

Published : January 13 2015 at 9:11 ET

Major averages fell yesterday on higher volume with major indices closing below their respective 50-day moving averages. When the market has a distribution day on day 3 after a follow through day, the rally fails at least 3/4 of the time. Further, when the market undercuts the low of the follow through day, the rally usually fails. Taken together, the Market Direction Model has switched to cash.

The 30-year Treasury yield hit at all-time low while the price of oil continued it's freefall, falling nearly another 5%. With the quantitative easing switch off in the US while on at other central banks, the US dollar continues to rally. Falling Treasury yields even with no QE in the US at present could be a sign of scared money buying US Treasurys as the US is the tallest standing midget in this recessionary and potentially depressionary global situation.

Futures are trading sharply higher this morning.

We note that short-sale target Workday (WDAY) has pushed up into its 200-day moving average, which provides a nearby reference point for an upside stop. If this morning's futures jack fails, this may become actionable.

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.