Market Direction Model - Model switches to BUY on June 15, 2020

Published:

15 Jun 2020 14:43 ET

MDM has switched to a BUY signal. Limitless liquidity continues to provide a firm floor for any setbacks, economic or otherwise. Markets continue their relentless, but choppy/noisy, gap-down-prone uptrends. The recent sharp pullback was even more brief than expected despite renewed cases of COVID-19 which could prolong or reinstate parts of the lockdown. Part of successful investing is remaining fluid to changing conditions at all times.

The market boost at 2 pm EST was caused by this announcement:
Federal Reserve Board announces updates to Secondary Market Corporate Credit Facility, which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers. Full report:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615a.htm

Stocks, bonds, gold, real estate, and bitcoin have been and will continue to be recipients until the sovereign debt bubble blows apart. But that could still be a few years off. The dollar is still deeply ensconced as the world's reserve currency, plus technologies growing at an exponential rate remain in evolutionary overdrive. That creates actual wealth over time.

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)

TECL (Direxion Trust Technology)

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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