Reminder: Our weekly SOTW Q&A webinar will be held tomorrow, Tuesday, Sept 8 at 12:30 p.m. ET. We’ll look at current market conditions in Realtime and answer your questions about Friday’s Special Presentation which was all about, ‘Trading the Trend’. Would you like to identify stocks that just became Buy rated? Or stocks whose RT just crossed above 1.00? Or maybe in this market you want to find stocks that are doing just the opposite – stocks that have just become Sell rated or RT has just crossed below 1.00? Our powerful “TREND” function identifies patterns in just about any of our indicators and is already included in our UniSearch too.Click Here To Register.
What to Look For Next Week. The market sold off sharply last Tuesday but seemed to be recovering Wednesday, however, after a strong open the market sold off throughout the day losing most of its gains. Despite this however, we ended up with a Green Light in the VectorVest Composite (VVC/CA) price column and we were looking to have our shopping lists ready.
Unfortunately, it was more of the same Thursday. A higher open followed by an afternoon sell-off. Advances in telecom and banking shares lifted the market higher at the close even as prices fell from their highs in afternoon trading. So despite the overall gain, the end result Thursday at the close was a new Primary Wave Down (PW/Dn). The downside momentum continued Friday after the release of the U.S. jobs data triggered concerns of an increase in U.S. interest rates. We ended with a red light in the price column and guidance that states, “Prudent investors should not buy stocks at this time.” Downside risk outweighs upside potential.
The Market Timing Index (MTI) remains at 0.60, so we know we’re searching for a market bottom at this level, however we can stay down at this level for some time. We are currently in a sideways channel. As Todd Shaffer stated in Friday’s Market Timing video, we need to be patient and wait for price to break out and establish a new, potentially sustainable uptrend.
DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. There are risks involved in investing and only you know your financial situation, risk tolerance, financial goals and time horizon.
Presented by Stan Heller, Consultant, VectorVest Canada