With today being yet another distribution day, as the final volume tallies show greater volume on the NASDAQ Composite compared to yesterday's volume, the model is switching to a sell signal standby. In subsequent trading days, should the NASDAQ Composite make an intraday move below the low of today, at 2612, the model would most likely switch to sell. I say most likely because it is not necessarily guaranteed. The action of leading stocks would be the final nail in the coffin. Stay tuned.
As of late, leading stocks have sold off on substantial selling pressure. Of course, this is not a normal market environment with federal reserve quantitative easing fighting any downtrend, so we could very get another situation where the model issues a sell signal as it did on 11/16/10 only to see the market immediately find its low and move higher.
That said, when the market does make a concerted move, such as it did in May to the downside, or in September to the upside, these intermediate term trends more than make up for the small losses along the way. The losses are made small by the fail-safe that kicks in if the signal proves false.
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.