It may come as a surprise to some, but the price of the VectorVest Composite, (VVC/CA). has gone up week over week for two consecutive weeks, and today the MTI, Market Timing Indicator closed above 1.00. So, we have the signal of a confirmed upturn. This signal will be noted as C/Up in the Trend column of the Color Guard Report on VectorVest’s Home Page.
The C/Up, or Confirmed Up Call, is telling us the market is on the road to recovery and the potential for a sustained rally from here is at hand. C/Up Calls in Canada have been reliable and profitable with few exceptions historically. Unfortunately, one of those exceptions was the most recent C/Up which came on September 17th. The rally lasted just three days before the market turned lower, delivering a Confirmed Down Call, (C/Dn), on November 14th. The truth is, the market has been in a narrow sideways channel since the May 13th C/Dn Call, breaking to the upside for a few days and then falling right back to the bottom of the channel.
So, what to do now.? Well it’s a Confirmed Up Call, so we should be thinking bullish, but perhaps stepping in a bit more slowly than you might have done on other C/Up calls, at least until price on the MTI graph breaks above the recent September 20th high (see MTI graph below). Buy one or two positions at a time only on days when the market is rising until we clear that resistance.
Favour stocks that are safe, undervalued and rising in price, just like the ones that are being held and purchased in our Model Portfolios.
Good luck, and Safe Investing everyone.
For a discussion of the Confirmed Call and Hot Stocks, please join me for our regular weekly Q&A next Tuesday, November 19th. CLICK HERE TO REGISTER. Register now and get the recording, even if you can’t attend the live webinar.
Written by: Stan Heller