Written by: Mike Simonato, Ontario Presenter: “Investing for the Long Term, presented to the Feb. 6 2021 International Online Forum, you can watch by CLICKING HERE.
Make no mistake about it the next 6 to 8 weeks will be crucial to how this year goes. The amount of stress people are going through is intense, to say the least.
I know people and have clients from all income levels/ Social Status Levels. Every family is going through stress, some to the extreme.
Here is just one example:
Now the Economy: In Ontario, the numbers are rising and hospitals are sending patients to other jurisdictions to relieve stress. Here is the issue. The Front-line workers are exhausted and stressed to the max. They have all said now is not the time to loosen restrictions with numbers rising and the variants taking hold. The Govt knows however that people are tired of lockdowns and many businesses are facing a dire situation. (Last week I highlighted the average debt load businesses are facing). With the nice weather, everybody wants to get out and about. Add in the vaccine fiasco between the confusion as to who can get what were and when and continued uncertainty and the many delays in receiving the vaccines, plus now we have to wait 4 months to get the 2nd dose which Health Care professionals are all saying will put people at risk, and we can understand the stress levels.
Here are some points to watch that can affect the future for markets:
- Personal Real Estate The market is booming. People are on average paying $200,000 to $800,000 OVER ASKING. This has the potential to end very badly.
- Because Online Shopping is so huge, now there is a huge demand for warehouse space to use for storing and shipping all the merchandise ordered online
- The sleeper to watch. Canada: The Hydrogen Fuel Cell Industry is really taking off with big orders from all over the world.
- The Suez Canal issue will possibly disrupt the supply chain in the short term with over 400 ships sitting idle until the issue gets resolved (which won’t happen anytime soon).
The World VectorVest markets are all flashing warning signs except Europe. The VIX is still in a downtrend but seems to be holding the 21/22 level for now so
We can continue to see the volatility we have experienced the last 2 weeks however the swings will be milder than we experienced in the fall but still a tricky market. Caution is definitely warranted.
The $CDN fell below 80 cents but seemed to hold 79.5 cents and the graph is still in an uptrend with higher highs and lows.
I’m booked solid now until July, so some good trading opportunities should be coming soon.
Now for the Markets:
DOW JONES: Holding the 20 SMA Big up day. Last week Stan showed traders weren’t willing to hold over the weekend, whereas this weekend they bought into the close.
NASDAQ: Weak Closed below the 20 SMA
S&P 500: Huge up day today. Watch for follow-through next week
MKT TIMING: Holding the 79 SMA
READ VIEWS and Strategy (Warning Bells)
PTSE: Up Trend still intact
VENTURE: Holding the 79 SMA but looking Weak
MKT TIMING: Can’t break above the Feb Highs
READ Views (Stan does it again) Strategy
AUSTRALIA BSR in the 40’s, Read Views and Strategy (Warning signs)
UK Read Views and Strategy (Warning signs)
NOTE: Bob Turnbull is on his way to 5,000 views on Youtube. If we haven’t watched it yet, it’s well worth it. Let’s get Bob to the 5,000 level. Click here to Watch.
Be sure to sign up for the FREE VectorVest Financial Summit in April. VectorVest.com/Summit
As always nothing more than my 2 cents and I hope it’s of value and interest