fb
X
X
Tired?
Unfocused?
Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
YES, SEND ME THE FILE !
YES, SEND ME BOTH !
Your email will always remain private.

MDM - Commentary September 7, 2011

Today's NASDAQ Composite traded on higher volume with the index up more than the required threshold level. But there was scant leadership evident, and as we have reported, the market is in a "chop zone". The MDM is not a day trading model but attempts to catch the intermediate term trends. In doing so, it deals primarily with price/volume of leading stocks and major indices. Thus during periods of excessive volatility such as the one we are in now, investors can get thrown, as can the model. Thus the model has a fail safe it obeys to keep losses to typically less than 2% on a false signal. This fail-safe is up around 2612 on the NASDAQ Composite which is 1.96% from where the sell signal was issued. This 2612 level could change, however, depending on market conditions. Note, analysts predictions are not weighed into the model at all. Material news can affect the model provided price/volume confirms, in either direction.

Obama is giving his speech on Thursday night after the close. The model will be watching to see how price/volume reacts to market anticipation before the speech in tomorrow's trade, or in other words, the market pricing in the 'good' news. It will also be watching to see how the market reacts to Obama's Thursday night speech on Friday and early the following week. Usually, 1-3 days is all that is needed to identify whether a new uptrend is beginning (and would be accompanied by a legitimate follow through day) or if the uptrend is a dead cat bounce that can be shorted, or at least positions in inverse ETFs held.

The model, in the meantime, remains on a sell signal. Most leading stocks have sloppy patterns that are not indicative of stable bases from which to launch. It is possible such stocks will stabilize, then issue buyable pivot points, at which time, the model would probably move to either a cash or buy signal.

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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
FOR OUR FREE MARKET LAB REPORT :
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy