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 May 6, 2022

Major market indexes tested their recent lows on Friday after a spectacular two-day display of bi-polar price action on Wednesday and Thursday. On Wednesday, after the Fed meeting, the market keyed on Fed Chair Jerome Powell's comments that 75-basis point increase rate increases were "off the table" in expectation of a "softish landing," as he put it. That was enough to set off a massive short-covering rally on Wednesday that then completely reversed on Thursday as the S&P 500 and NASDAQ Composite Indexes reversed at their 20-day exponential moving averages. The indexes are now roughly back to where they were before the Fed policy announcement on Wednesday, but remain in downtrends as the general market remains quite weak underneath the surface, among individual stocks.
Short-sale target Visa (V), on which we reported as a short the prior week as it ran into its 200-day moving average, triggered another short-sale entry on Thursday. This time the trigger was a break back below the 50-day moving average. V then pulled a U&R cover signal on Friday as it undercut the prior late April low and rallied back above it. This may not last long, however, but we would certainly be open to any rallies back up towards moving average from here as potential opportunistic short-sale entries if they occur.
We remain cautionary on the market as many stocks and groups continue to make lower lows. While the indexes ended the week near their lows for the year, and could certainly rally off near-term price support, the odds of lower lows over time remain high enough to keep us on the sidelines for now.

The Market Direction Model (MDM) switched to a CASH signal on Wednesday, May 4th. Powell's words soothed markets so could create a period of chop and slop or even another dead cat bounce here; best to take profits. The overall downtrend most likely remains intact so the MDM will be looking to re-enter on a possible dead cat bounce as Powell remains hawkish, but did say he does not see a 75 bps rate hike on the table and thinks inflation may flatten along with some evidence of a peaking core PCE. In the coming weeks to months, should inflation start to flatten, he may use that an excuse to switch back to a dovish position by postponing rate hikes as he did in January 2016. He does not want to cause a deep recession nor tank the markets undoing what 13 years of quantitative easing has done to elevate and enrich the top 1%. Politicians hold dear stakes in stocks, bonds, and real estate. Still, this time, he may have to let the majors drop deeper than the typical -20% correction seen on the NASDAQ Composite and S&P 500 a number of times since 2010 in this Era of QE. 
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