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 - Dead cat bounce?

Signs are showing that the latest bounce which began on September 12 is a dead cat bounce for the following reasons:

1) Friday's options expiration resulted, as is typical on such days, in exaggerated trading volumes across stocks and indices. Short covering of positions has been evident while there has been lackluster buying of leading stocks. Further, very few leading stocks have formed constructive bases and are moving to new highs.

2) Both the price of oil and the CRB index which tracks the price of a basket of commodities is showing much weakness, both having undercut their 200-day  moving averages several weeks ago. This is an indication that demand on such commodities is weak and thus telegraphing that we could be headed toward a global recession.

3) The small cap Russell 2000 usually outperforms the large cap NASDAQ 100 in uptrends. Yet in the latest bounce, the Russell 2000 is underperforming. Thus the fail-safe in this case is being governed more by the Russell 2000 than the NASDAQ Composite. Nevertheless, the Market Direction Model is indeed close to switching should the Russell 2000 move slightly higher from current levels.

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