Market Direction Model - Model switches to BUY on November 29, 2021

Published:

29 Nov 2021 08:26 ET

MDM has switched to a BUY signal.

The C19 scare caused a selloff in stocks and crypto due to fears about the new strain even though this is what viruses from past pandemics going back hundreds of years do. They mutate. They are rarely worse than the initial strain which is why the dozens of pandemics over the last millenium quickly died out, typically within a couple years of first infection.

An earlier report published here on VSI said to expect additional crises to emerge which would therefore cause M2 to increase if history is any guide. Indeed, mainstream media is great at pumping fear, so expect overplayed fears on C19 to negate the taper talk since no politician or central banker wants to tank the markets by tapering or hiking rates. Also figure that interest rates being at 5000 year historical lows around 0% means any rate hike beyond a token 25 bps amount would accelerate debt which already stands at record levels.

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.)

"Stuff" stocks, ie, commodity-related plays should continue to do well, thus the S&P500 and its related ETFs should continue to show strength. That said, techcentric NASDAQ Composite and TECL often lead with outperformance on a percentage basis under more normal conditions.

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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