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Caution Warranted, But Ride The Bull Until It Tells You To Get Off – Mike Simonato, My Two Cents

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Written by:  Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)

First, let’s look at the crazy markets.  Caution is still warranted but ride the bull until it tells you to get off.  Remember there is always a Bull Mkt somewhere. (See my 2nd email for an idea)

US

DOW JONES:  Hit lower high on Wed.  Line in the sand is 25,049.01

NASDAQ:         Holding the T Line  Has retraced to the 20 SMA 4 times

S&P 500:          3 touches this week @ 3234.01 and failed to break above  First touch June 8  (Remember that date)

MKT TIMING:  Making a run at the June 8th high of 48.61

READ Views, Strategy, Climate  Earnings Indicator continues to fall

CANADA

PTSE:              Broke out but low volume and weak candles

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VENTURE:      Holding the T Line on stronger volume.  Maybe another breakout

MKT TIMING:  Continuing to rise and holding the T Line. MTI and BSR also rising

Model Portfolios  1,2,and 5 continue to do well

READ Views, Strategy (there is that June 8 again), Climate  (Earnings Indicator remained unchanged)

How can we still trade despite exhaustion?
In the last 2 days, I’ve done 17 jobs in extreme heat and humidity (have to get up between 3 & 4 and start by 5:30). Needless to say, after 3 months of this exhausted is an understatement. As much as I enjoy the mkts and looking at graphs and analyzing when I’m this tired the desire isn’t there as well as focus. So how can we still trade despite exhaustion?  First Bob Turnbull has an Amazing Strategy that lets you do it on the weekend and has midweek protection built-in.  One thing I find helpful is the Watchlist Average Graph and the QuickTest feature.  In July, VectorVest has continually warned us to Protect Profits.  Simple steps we can take to see if direction is changing and where the money is being put to work.  Here is something I find helpful.

  1. Quick Test My Strong Portfolios from initiating trades
  2. Quick Test same Portfolios in the Time Frame of Concern
  3. Look at the Watchlist Average Graph

(Click Graphs To Enlarge)CDN RET Portfolio WatchList July 17 2020

 

The above three steps usually takes 10 minutes  Doing this can reveal things I never thought about (ie USA and Canada going through the same setup) and also can confirm what I knew in advance.

As always nothing more than my 2 cents and I hope it’s of value and interest.

My Picks to July 17 2020

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