Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
Your email will always remain private.

VoSI Focus List Review for the Week Ended April 22, 2022

The market appears set for a test of the March lows as hawkish comments from Head Fed Head Jerome Powell on Thursday torpedoed the S&P 500 at its 200-day moving average. The index, along with its cohorts including the NASDAQ Composite then broke lower again on Friday. We remain in a bear market correction as we expect that a potential new leg down in the general market indexes is now commencing, as we have warned was likely in recent weeks.
One major clue that a new down leg may be starting is seen in the action of what we like to refer to as "stuff stocks," or those names that have benefitted from the commodity-inflation theme and which have been in their own little stealth bull market since early January. Many of these names broke down sharply this past week, such as aluminum producer Alcoa (AA) and big-stock copper producer Freeport-McMoRan (FCX). Uranium producer Cameco (CCJ) has now failed on a recent breakout attempt and triggered a short-sale entry at its 20-dema on  Thursday. Iron ore producer Cleveland-Cliffs (CCJ) gapped up on Friday after reporting earnings but quickly morphed into a shortable gap-up, triggering a short-sale entry at its 20-dema later in the day. It would remain shortable as close to the line as possible which then becomes a covering guide.
The oils , materials, financials, and metals ETFs also illustrate the weakness in what are traditionally economically-sensitive areas of the market. Talk of two 50-basis point and one 75-basis point interest rate increases over the next three Fed meetings has now shifted to talk of one 50 and two 75's, and stocks have finally broken broadly in response.
It appears that all the speculation and hand-wringing over whether the Fed will be able to "engineer" a soft-landing is moot. In our view, it is possible the Fed won't even engineer a hard-landing, but something more akin to a hard fall. We have never seen the market start a bold new bull market when the Fed is hiking rates so aggressively, and those who continue to tout the current bear market as a "buying opportunity" have so far been dead wrong if not entirely ignorant of market history. The jig is up!
The Market Direction Model (MDM) remains on a 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. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy