The model has switched to BUY. With positive action from stocks on which we sent reports to members on Friday, and continued positive action today by leaders including TSLA, this could hint that the market has found its floor and will move higher from here on a tapering of QE being delayed for longer than expected. The S&P 500 also managed to close just above its 50-day moving average and is moving higher at present.
One Fed governor said the tapering of quantitative easing should be delayed since the Fed has room to wait given low inflation. Another Fed governor said tapering should start in September. Such dissenting opinions creates what we call "schizofedic" market action, or the inability for the market to trace out a discernible trend. Nevertheless, buying pressure points to a resumption of the uptrend, even if short-lived.
Markets are forward-looking by typically 5 to 9 months, so the model will be on lookout for increased selling pressure.
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. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.