Written by: Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)
The Markets: Hope everyone is seeing the many red flags in the markets. Wed had a rally, but Thurs while it did look like follow-through, the market sold off and Friday was mixed – i.e. – up at the start then went red, but Dow finished up modestly. For me, really starting to see built- up selling pressure but time will tell who wins the war between the Bulls and Bears. USA got a C/DN Call on Friday, so another Red Flag.
I couldn’t give numbers before but now that they are public it has been revealed that 790,000 people have not been paying their mortgages not to mention those who haven’t been paying rent and student loans. A lot of these people likely haven’t been paying their credit card bills either. COVID numbers in Ontario are rising again (over 200 a day after being under 100 for a few weeks). We will have to wait to see how things play out, but this could be a very scary fall as big money has been warning me.
USA – C/DN Friday!!!!!
DOW JONES: All USA Mkts are in a descending wedge. Hit the support line 4 times this week
NASDAQ: Same setup as Dow
S&P 500: Could fall further to support but the same look as other 2
MKT TIMING: BSR, MTI, and RT continue to fall Currently, price is at 49.43. Next 2 support lines 79 SMA @ 48.3567 and 200 SMA @ 46.9827
READ Views and Strategy
PTSE: Holding support except for fall near 79 & 200 SMA support. Still in downtrend since Aug 27th and RT still falling
VENTURE: In a channel since July 31stRT falling 3 touches at support. Looking for 1 more touch then either up or down move.
MKT TIMING: BSR, RT, and MTI continue to fall. Price falling. Look at 79 and 200 SMA as possible support
Read Views (Very Important), Strategy and Climate
Here is the Secret to Making Money in the Market.
- You Need a TRADING PLAN that Works for YOU!!!!
- You need a GRAPH STYLE that YOU UNDERSTAND and Works.
Without the above, you will lose your money or not make as much as you should. Here are the MISTAKES people make that will ensure FAILURE:
- Copy someone else’s trades
- No idea how to set up or read a graph/ chart
There is no better System than VectorVest Period. It gives us everything we need to be successful in the market no matter what type of traders we are.
VectorVest has members of the Vector Vest community that are willing to share and give back from free webinars, views and International Forums etc (Stan Heller)
Another example is Bob Turnbull who has been gracious enough to share his amazing strategy with us but what is sad and deeply disturbing is ones who don’t want to do any work but merely copy trades and then when a trade doesn’t work out or the market tells us we shouldn’t be trading and one loses money, they blame the few good people willing to share.
Here is a hard and fast rule that MUST be APPLIED to MAKE MONEY in the MARKET!!!!
LOOK at the GRAPH BEFORE MAKING ANY DECISION!!!!
Let’s consider some examples:
GOLD/ SILVER I have been told that I want to be in Silver as it will outperform Gold. While I appreciate the insights from those in the know here is MY PROCESS:
- Create Watchlists of Stocks and ETFs in the markets I want to trade
- Look at the INDUSTRY GRAPH It shows a nice rally until the beginning of August then a Downtrend from the first of August until now
- Quick Test during the strong period to see who outperformed (Silver ETFs best)
- Quick Test during the downturn to see if any stood up during weakness
- Quick Test most recent period to see if there are any changes to money flow
- Prepare and have my Shopping List Ready
GOLD/ SILVER INDUSTRY is still in a downturn therefore I WILL NOT BUY ANYTHING UNTIL THE GRAPH TELLS ME IT’S TIME
When the Industry Graph tells me it’s time then I will do a recent Quicktest to see if my Buy List is still the smart way to play it and I LOOK at EACH INDIVIDUAL STOCK/ ETF GRAPH to make sure it gives a BUY SIGNAL.
When the time is right the above process takes maybe 15 minutes and I’ve done everything possible to ensure success. I also have MY EXIT PLAN in place BEFORE BUYING. One thing I have learned is the market hates me and even though I do everything right when I buy, sometimes it goes down and when I sell it goes up