MLR - PMP 5/16/14
The major market indexes suffered a sharp distribution day yesterday as volume ballooned and the S&P 500 failed in what was de another bull trap breakout that sucked in unwary investors. The S&P 500 was able to find support along its 50-day moving average, while the NASDAQ remains trapped between its 50-day and 200-day moving averages. The put-call volume ratio, meanwhile, closed at 1.02. High readings can foretell market bottoms but since this is only a secondary indicator, its reliability can be questioned. In our view the long side of this market continues to carry significant risk and so investors should consider their actions carefully. This is not the time to take aggressive action on the long side, if at all. MDM came close to switching out of its buy signal yesterday and remains on close watch.
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.