MDM has switched to a BUY signal.
On the sentiment side favoring a continuation of this bounce, AAII bulls are at all time lows, falling below the lows of March 2003 and March 2009.
Nevertheless, number of powerful bearish arguments and lack of leadership have been at the forefront during this bounce, yet the market is never wrong, and today's strong rally was a sign that the quantitative easing and burgeoning negative interest rate environment could push capital into hard assets and equities, thus the US stock markets being the tallest standing midget would reap the benefits. While it is still too soon to say a slingshot effect has begun, it has been key to remain fluid in these markets, and not get wedded to either a perma-bullish or bearish stance.
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.)
SPY (S&P 500) (Lower risk, lower reward)
QQQ (NASDAQ-100) (Higher risk, higher reward)
SSO (S&P 500)
UPRO (S&P 500)
NOTE: 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 http://etfdb.com/ can be instructive.