Market Direction Model - Model switches to CASH/NEUTRAL on December 21, 2018
|Published:||21 Dec 2018 12:10 ET|
As per the prior email to sell your buy-related ETFs when the NASDAQ Composite hits 6446, the Market Direction Model has switched to a CASH signal. Thus the price on record is 6446. The downtrend remains intact. The fact that the market cannot stage a bounce after the CBOE total put/call ratio spiked to 1.37 earlier in the week, then 1.82 on Thursday 12-20-18, a 5 year high, among other aspects of unusually weak market action, speaks volumes. Further, this is looking to be the weakest market action in decades for the bottom half of December, but maybe should come as no surprise after 10 years of QE which has overinflated values. Should the Fed take a drastic approach and reverse their position of hiking rates, that may actually cause a loss in confidence in the Fed, thus precipitate more selling. Indeed, it seems the Fed may have exhausted all of its 'Trump' cards. Inevitably, always keep your stops tight, especially when levels of volatility are this elevated.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2023 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.