Most investors are taking a cautious, disciplined approach appropriate for current market conditions according to our poll conducted at the Saturday, February 20th CA Regional Forum. Just over 40% are holding more cash than usual and about 24% are half in cash.
That said, there are solid buying opportunities out there that we can take advantage of when the Color Guard is Bullish. The “top down” method we demonstrated during the webinar is a great way to find them. In the meantime, a small ball, conservative approach by holding fewer positions, buying fewer shares and taking at least partial profits early can produce outstanding returns.
In case you missed Saturday’s Forum, here is the recording link:
In this time of market uncertainty, VectorVest Canada Consultant Stan Heller told attendees there are six news events and trends that we should focus on:
- VectorVest’s Daily Color Guard Reports
- VectorVest’s Market Timing Graph and Indicators
- Vaccine Rollout – is it successful or not?
- News of more financial relief and stimulus spending
- When to Buy quality stocks – VectorVest Buy-rated on strength, and pullbacks on market up days
- Sector and Industry Group Strength or Weakness
The remaining portion of the Forum was a presentation on how to determine Sector and Industry Group High Fliers and Movers and Shakers.
Heller said, “VectorVest believes the key to consistent success is to buy great stocks that are rising in price, in rising industry groups and sectors, when the market is also rising.” He showed how a rising sector lifts all stocks in the group, as shown below.VectorVest’s RT, Relative Timing indicator shows the price direction and momentum behind a Sector’s move, and the RT Ranking shows how well the Sector or Industry Group is performing compared to all other groups.
A Quicktest of the 24 stocks in the Building Sector shows 23 winners and 1 loser. The results below show how a few of the better-known names in the sector performed from 11/13/20 to 2/22/21.