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MDM - Model switches to BUY on August 13, 2013

The major averages have been trading sideways more or less over the last four weeks. The question remains when the Fed will slow quantitative easing which would occur when the economy shows signs of a true turnaround. But because the Fed does not want to taper too quickly, odds are that they will be dovish with respect to slowing QE so as to not upset the fragility of the recovering economy. Signs out of China and Europe show economies that may be turning the corner.

The MDM is consequently on a buy signal as price/volume of major averages and leading stocks remains constructive overall despite the large number of distribution days on the NASDAQ Composite. Constructive action in leading stocks include TSLA, PCLN, LNKD, FB, AMZN and a smattering or smaller names including YY, TRLA, YELP, MELI, VIPS, KORS, CONN, LGF, and FLT among others which are also continuing their uptrends. In this QE environment, distribution days must be taken in context with capital injections into the market which help the market tip toe higher.

That said, markets are forward looking so we will be on watch for the start of a correction. But until stronger signs are evident in the way of price/volume action, we should adhere to the saying "Don't fight the fed."

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. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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