FAQs Frequently Asked Questions
A: MDM is for ETFs. It can be on a sell or a buy signal, but that does not preclude one from buying or shorting stocks. If the MDM is on a sell, some members position size in smaller into any stocks they buy. Others may keep their stops tighter than normal. Vice versa if the MDM is on a buy.
This is the key point and takeaway I want to make here: Pocket pivots are objective events that occur in any environment - we simply identify them for members since the objective occurrence of a pocket pivot can take place in a confirmed rally or a market in correction, thus the MDM's current signal is not relevant. Sometimes a confluence of pocket pivots in an "iffy" market can be a harbinger of a market that is setting up to go higher, such as all the pocket pivots we saw during the summer correction of 2010.
|First published:||21 Dec 2011|
|Last updated:||21 Dec 2011|