Market Direction Model - Model switches to BUY on February 7, 2019

Published:

7 Feb 2019 09:57 ET

MDM has switched to a BUY signal. The dovish stance taken by the Federal Reserve and other central banks around the world has once again pushed the major indices away from bear market territory. Due to the ongoing tug-o-war between slowing economies and quantitative easing programs, the market may continue to trade in sloppy fashion as was observed for much of 2018 as QE pushes major indices reluctantly higher. As a consequence of 2018 to present day, the model has been using wider bands in terms of its signal changes to reduce the number of whipsaws. The trade off is larger loss allowances. Position size accordingly.

Suggested ETFs (Note: Many members buy the standard ETFs or their preferred ETFs. This list serves as a guide as to which ETFs we think may outperform, but the key point is to be on the right side of the market regardless of which ETF or ETFs one chooses.)

1-times

SPY (S&P 500)

QQQ (NASDAQ-100)

2-times

SSO (S&P 500)

QLD (NASDAQ-100)

3-times

UPRO (S&P 500)

TQQQ (NASDAQ-100)

NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.

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