Written by: Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends and “Investing for the Long Term, presented to the Feb. 6 2021 International Online Forum, you can watch by CLICKING HERE.
My 2 cents (Nothing more than my opinion) This market doesn’t feel good. With the level of stupid we see, the overbought levels (for a while now) seeing some Bearish Divergences and around the world Vector Vest has been urging caution. Here are some views of Warren Buffett and excerpts from a Financial Times article.
Warren Buffett: Calls this market “Silly Season” also says “Be FEARFUL when OTHERS are GREEDY”.
“Most people get interested in stocks when everyone else is, however, the time to get interested is when no one else is. You CAN’T BUY WHAT IS POPULAR AND DO WELL” “I will tell you the SECRET to GETTING RICH on WALL STREET: You try to be greedy when others are fearful and be Fearful when others are Greedy”. Right now you are seeing Greed on a level that I have never seen.
This market is Silly Season because of the explosion of Stock Trading, Speculation, Proliferation of Black Cheque IPOs with 20% moves on no news, Weed having big up days followed by big down days and the intense love affair with Crypto Currencies and Short Squeezes. The Propensity to Gamble has increased a large prize versus a small entry fee, no matter how poor the odds may be. Herd Mentality is powerful right now thx to Redditt.
Two Keys:
- When the majority show no Prudent behaviour in trading the More Prudent our Behaviour we should be.
- What doesn’t work is when we do things that we don’t understand because they worked last week for somebody else.
REMEMBER: The Market is a Device for Transferring Money from the Impatient to the Patient.
As always, nothing more than my 2 cents:
Now for the Markets:
USA
DOW JONES: Broke above resistance and stalled but respected new support. Watch RT
NASDAQ: Still looks good and respecting the 8 EMA and stronger candles than the Dow
S&P 500: Likewise nice uptrend and respecting 8 EMA RT is still in a tight channel (See 1 yr graph)
MKT TIMING: Price stalled the last 3 days but ok RT and MTI is Flat BSR Fell
CANADA
PTSE: Rising nicely but stalled the last 3 days RT still below the channel
VENTURE: Possible Bull Flag RT rising. Selling vol heavy however today close to Bullish Engulf today
MKT TIMING: Price flat the last 4 days BSR 3 lower highs, MTI Stuck at Resistance level. RT Just below resistance
READ Views and Strategy. Both countries. The Earnings Indicators are flat.
Europe and England Read Views, Europe, England and Australia have Bearish Divergences
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