The Market Direction Model has switched to a CASH signal. A cluster of distribution days including a stalling day on volume well above average have pushed the model into cash. Over the last couple of years, the markets have found a shallow floor then moved higher. Markets are forward looking thus may see further reductions of QE in Europe and Japan in the future as problematic. That said, such reductions may not be meaningful should the global economy not convincingly turn the corner. Onerous levels of debt remain, and as Deutsche Bank has pointed out, it will be the mother of all tests whether this ageing bull can withstand the unwinding of QE.
Market Direction Model - Model switches to CASH/NEUTRAL on February 5, 2018
|Published:||5 Feb 2018 15:10 ET|
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. ©2019 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.