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MDM - Update 12/7/10

This topsy turvy whipsaw market has been the name of the game since mid-November, first with the general market and leading stocks selling off hard in mid-November, then almost immediately turning around and springing toward new highs. We have thus gone with the turbulent flow, and have continued to recommend individual stocks even while the model was on a neutral signal since the model is designed for ETF investment.

That said, today's market staged a reversal off its highs. This qualifies as a distribution day. With enough distribution days under the market's belt, the model is hereby on a sell signal standby, meaning it is still on a buy signal, but should the NASDAQ Composite go below today's low in subsequent trading days, a full sell signal would be issued. So for those who bought ETFs today, your losses should be minimal as the sell signal would trigger at 2596, ahead of the fail-safes, which were set at 2583 and 2566. Remember, to bag the big trends, expect little losses along the way. Part of the strength of the model is that it can quickly reverse course, usually within minimal loss, if necessary.


As for precious metals, they had a reversal today but this is certainly not the first time. As long as the federal reserve continues to print money and QE2 continues its course, the long term uptrends in the precious metals should continue. Of course, pullbacks are part and parcel of uptrends, and based on today's market action, it would not be surprising to see.

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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