Written by: Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)
Are we having fun yet? CNBC labelled last week the worst since March. As we enter a potentially turbulent time here’s what I’m looking at:
USA Confirmed Down Call (C/DN) on Monday Price 3 out of 5 days in Color Guard showed the star *, which highlights the strength in a downward trajectory – BSR 0.19 MTI 0.71
CANADA C/DN on Monday Price 4 out of 5 days showed the star* – BSR 0.14 MTI 0.68
EUROPE C/DN Price 3 out of 4 days showed the star*
UK C/DN Price 4 out of 5 days showed the star*
AUSTRALIA C/DN Price 4 out of 5 days showed the star*
SUMMARY: As COVID numbers continue to rise and more lockdowns take effect ie England going into total lockdown and I believe France and Spain etc we could be in for a difficult time. When you read the Strategy Section from around the world, it certainly highlights the need to be cautious. As I wrote previously, I went to cash Aug 28. How has the MKT done since? (You can check any portfolio to compare results) Here are a couple of samples:
USA Retirement Portfolio: Mar 16 to Aug 27th UP 75.25% Almost Double the Mkt
Aug 28 to Oct 30th DOWN 12.52% Almost 4x the Mkt
AI Portfolio Mar 16 to Aug 27th UP 131.92% Over 3x the Mkt
Aug 28 to Oct 30th DOWN 2.58% Slightly better than the Mkt
Sometimes Cash is a Good Position. The Best Headline from the week is from CNBC In the USA “It’s Legal to give Bad Financial Advice”
If that alone doesn’t show the value of VectorVest I don’t know what will. Also now we have access to most of the world markets. I strongly urge everyone, even though most don’t trade these markets, READ the VIEWS of EACH COUNTRY. Stan’s advice once again is spot on. Also although we don’t trade those markets we can trade the ETFs of those countries (Remember the World ETF Watchlist in the US software). Also, READ the STRATEGY SECTION of each country. Shows a worldwide pattern.
Anyway here are the North American Markets and what I see:
DOW JONES: Holding the 200-SMA. RT fell off a cliff but last 3 days stabilized. Bigger selling Vol Wed and Fri
NASDAQ: Broke below the 79-SMA. Long way to 200-SMA. RT Falling and big selling Vol Wed and Fri
S&P 500: Holding a support line. Next Stop 200-SMA. RT Falling
MKT TIMING: Broke through the 79-SMA Long way to 200-SMA. All VectorVest indicators fell hard this week – RT, BSR, MTI.
PTSE: Price fell off a cliff this week. Broke below the 200-SMA, came back up but 200-SMA acted as resistance and continued down. RT falling sharply.
VENTURE: Fell through the 79-SMA. RT Stable. Long way to 200-SMA Watch and see what happens.
MKT TIMING: If Price breaks $21.75 the 200-SMA is the next level.
Interesting how the ADV/ Dec fell yet Consumer confidence rose. Go figure
Anyway that’s my 2 cents and I hope it’s of value and interest.