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MDM - Neutrality for now

The Market Direction Model (MDM) has been in neutral since December 10, yet the general markets continue higher in a non-committal, low volume manner, especially through much of December.

The market environment has been one of the most unusual on record. There has never been a sustained strong rally without a valid follow through day (FTD). Investor's Business Daily's Big Picture column once violated this rule and switched to a buy signal, but that buy signal proved false.

That said, MDM may switch to a buy signal without a valid FTD as there are other variables that are weighed into the model. So far, the model remains on neutral.

I learned while working for Bill O'Neil that cash is often king, especially during unusual market environments. He spent time on the sidelines then would hit the markets hard when the window was clearly open. In other words, the market will always be there, there will always be new bull markets, and so in unusual environments such as the one we're in, it is sometimes best to stay neutral.

In the meantime, we continue to provide actionable stock ideas through our Pocket Pivot Review and Follow The Stock services so even if the market were to continue higher, odds are that the strongest stocks would continue to outperform. Most of the stocks we have mentioned in recent reports are trading higher and thus out of buying range such as ARMH, APKT, LEA, VMW, MIPS, SMSI, and CAVM.

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.
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