Major averages gave back yesterday most of what they made the prior day on mixed volume. Such market noise can no doubt be frustrating and can trigger fail-safes on both the Market Direction Model (MDM) and VIX Volatility Model (VVM) timing strategies. While the MDM remains on a sell signal, the market at this juncture struggles to find direction, caught between a large number of distribution days, scant quality leadership, defensive names outperforming, and QE which often creates shallow floors.
Shorter term trading remains mildly profitable but many leading names are not making much sustained progress as we showed last weekend on our actionable Pocket Pivot Review (PPR) and Buyable Gap Ups (BGU) report update. Patience is key as more sizable gains can be achieved once a profitable market window of opportunity opens. Risk control in both stocks and timing strategies is also essential as demonstrated by the VVM which sometimes must sit through a series of small losses to pave the way for the larger gains.
Futures are higher by more than 0.5% at the time of this writing as the price of oil continues higher. A drop in supply is predicted for later this year by the International Energy Agency.
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. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.