The NASDAQ Composite moved above the high of its switch to a sell signal on June 22, so at 2694, the model is now on neutral. When the model switches to neutral, one is advised to sell their ETFs.
Note, 2694 is 0.8% on NASDAQ Composite from where sell signal was initiated, thus minimizing the effects of this whipsaw market.
The model will switch to a buy once it sees a proper follow through day and/or proper follow through action on behalf of leading stocks. In other words, the bounce is not just one of the dead cat variety.
The model will switch back to a sell should it see either a lackluster rally indicative of a dead cat bounce and/or should the number of distribution days trigger a new sell 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. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.