Off your game?

Read our free Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
Your email will always remain private.

MDM (Market Direction Model): Caution on cloud computing stocks

The cloud computing group has been a leading group, but the group is being sold off today from a downgrade on CTXS, as well as EQIX anticipating a revenue miss due in part to slower revenues in their switch and data business.

With the run up the group has enjoyed, it is susceptible to pullbacks.

On ORCL, it has only recently broken out. In the report we sent earlier today, we were referring in particular to the cloud-computing stocks which have led the market since its lows in late August. There is always the chance that money will rotate out of the hotter, smaller cloud stocks and into ORCL as a more stable play in the group. However, it becomes a general market question, and if the market continues to fade here we would prefer to be long less and in cash more, or even short.

That said, last week's and this week's negative action on the group pushes the model closer to a neutral or a sell signal, but as of now, it still remains on a buy signal.

We will keep members apprised of any changes in the model.


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. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
Copyright ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy