The TSX soared 224 points today as Investors cheered rising crude prices after a surprise drop in inventories. Market sentiment also improved on both sides of the border as the U.S. Federal Reserve left the door open for a September interest rate hike. The DJI was up 121 points or about 0.7%.
For a complete market wrap, CLICK HERE.
VECTORVEST DOES NOT ADVOCATE BUYING STOCKS AT THIS TIME. Yesterday the MTI fell briefly to .59 before rallying to close at .61. Historically when VectorVest is near 0.60 and especially if it falls below 0.60, it signals we are near a market bottom. It’s often the safest time to buy when the market rises from that bottom and we get either a Primary Wave/Up or a Green Light in the price column for more confirmation. However, despite our 2-day rally, we still do not have a PW/Up. VectorVest does not advocate buying any stocks at this time. We could get a PW/Up tomorrow if the price of the VVC/CA rises just 0.025 cents. However, Tuesday is the earliest we can get a green light in the price column since the color guard price cannot turn green if there was a red five days earlier. Finally, notice in the above graph, resistance as shown by the upper trendline is not far above. If we can break through that level we have more chance of a longer, more sustained rally.
The table below shows the trends of our VectorVest at a Glance market information. Notice the number of Buy Rated stocks, while increasing the last two days, is still low that last week, 136 to 165.
DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. There are risks involved in investing and only you know your financial situation, risk tolerance, financial goals and time horizon.
Presented by Stan Heller, Consultant, VectorVest Canada