With the Canadian market already under pressure, Canadian investors were jittery today as the reality of an NDP majority in Alberta began to sink in across the oilpatch and Bay Street. The S&P/TSX Energy index fell 2.8%. The Mining sector was down 1.35% and Electronics fell 6.6%, led lower by Avigilon’s (AVO) 24% decline on spending concerns.
US stocks also fell sharply after Fed Reserve Chair Janet Yellen warned of high valuations, adding to anxiety about a global bond rout and upcoming economic data.
VIDEO REPORT: For a complete video wrap-up of today’s market action and trends including a look at today’s stock and industry winners and losers, please click on the following link: http://www.screencast.com/t/SEHH3gkdZ
When you study the VectorVest at a Glance information over the last three weeks, it’s easy to see the Canadian market has been under pressure. The number of Buy-rated stocks has fallen to 215 from 317. The BSR (BSR) has dropped to 0.27 from 0.38. Interestingly, the RT (Relative Timing), a smart indicator of price trend and momentum, has only fallen .01 from three weeks ago to 0.91 from 0.92. However, the trend of the RT on our MTI graph has been down since April 15, consistently hitting lower lows. It shows the decline, while steady, has not been as rapid or as steep as the one we experienced last September for example.
Have you bought a stock or two or three long in the last three weeks? If so, I hope it’s worked out for you, but I have to ask, Why? In today’s video we take some time to explain VectorVest’s guidance to Prudent Investors over this 3-week period. Sometimes the money we don’t lose is just as important as the money we make. That’s pretty much been the situation the last three weeks. VectorVest’s guidance to Prudent Investors in the VIEWS tab has consistently urged us to ‘not buy stocks’ and remain on the sidelines. The word ‘sidelines’ is VectorVest’s strongest warning in words of a possible sustained downtrend. It usually appears more frequently prior to a Confirmed Down Call. When we see the word ‘sidelines’, especially more than a few times close together in a short period, it’s a call to action to protect our portfolios.
I hope the above information and the video is interesting and helpful to you. Your comments are appreciated as always. As always, the information presented is for educational purposes only. It must never be considered in any way as specific investment advice. Everyone’s financial situation, risk tolerance, and investing style is different.
Submitted by Stan Heller, Consutlant, VectorVest Canada
May 6, 2015