The fail-safe level can change in real-time as we have stated in past reports and in the webinars. The last reported fail-safe of 2612 on the NASDAQ Composite has been adjusted higher due to lackluster buying pressure on the part of leading stocks and major indices. That said, while the model remains on a sell signal, it is close to switching signals. If the market has another up day or two, the model will most likely switch as it:
a) does not wish to argue with a trend, albeit a sloppy one characterized by a cancerous fundamental backdrop merely propped by temporary forces such as the Federal Reserve lending to cash strapped European banks, and
b) wishes to keep its losses to a minimum as dictated by 1-times ETFs such as QQQ. At present, the loss is at 2.3% on the NASDAQ Composite, so it won't take much to push the model into a cash 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. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.