Written by: Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)
Well, another week in the books with a shortened trading week south of the border. To say that this has been a unique year is an understatement. Fortunately, VectorVest gives us the tools to stay on top of what’s moving up and down. Although both the CDN and USA Markets are in overbought territory, they can stay here for the balance of 2020 but make no mistake I feel a correction setting up quite possibly in the New Year at the latest. As I have mentioned before, the numbers I’m watching are the 2020 Q4 and 2021 Q1 Numbers.
Anyway time for the markets:
MTI is in Overbought territory so while you ride the Bull until he kicks you off, we must be smart with any positions we own.
DOW JONES: Broke above the February high, then did a Bull Flag, Now rising again. See if Santa comes early this year
NASDAQ: After 3 tries finally broke above resistance on a Bullish Chart Pattern RT also starting to rise
S&P 500: Broke above long term Trend Line then like the Dow had a Bull Flag and now at a level it’s tested 3x in the last 2 weeks
MKT TIMING: Continues to look amazing with everything rising nicely
READ: Views and Strategy
MTI also at overbought levels but again, can stay up here for the balance of 2020. Again, be smart with any new or existing trades.
PTSE: Continues to rise nicely after bouncing off the 200 SMA for the 3rd time this year. All looks good so far.
VENTURE: Struggling at a Strong Resistance Zone. Want a strong breakout before considering this Market.
MKT TIMING: Same as USA, everything is rising nicely so ride the Bull until he tells you to get off.
READ: VIEWS (Print this one out) Stan does it again, Strategy, Climate Earnings Indicator finally rose.
To highlight the need for caution. look at the CDN Model Portfolios. They have all been falling lately.
POT continues to look good after the US Election, however, this can be a high-risk Industry so please be careful and protect any positions just in case.
VectorVest has always said EARNINGS drives the engine. I know in my business, my success is based on 2 things: 1. Grow Earnings, 2. Ability to control expenses. If I can do those two things then the value of my business increases and future sale value increases. That’s the type of company I want to buy stock in. Fortunately, VectorVest gives us all the information we need to make smart decisions.
Let’s examine an Industry/ Sector to see how we can apply this. The move this year has been to more online shopping avenues like Amazon or directly with small business websites, either way people have to pay with Credit Cards. If you watch when you’re out shopping most are also paying with Debit or Credit, So how can we profit from this? For me, the logical choice has always been Mastercard and Visa, however, if I just went with what I thought I knew I would be 100% wrong this year. Again VectorVest gives us what we need to make smart investment decisions.
Note: during lockdowns both in the past and future, Mastercard and Visa will lose revenue from reduced or no business at all from affected areas.
Look at the following Quicktests as a starting point and ALWAYS LOOK at the INDIVIDUAL GRAPHS BEFORE MAKING ANY TRADING DECISIONS!!!!
In 2020 Paypal was the overall best and now that we are heading into what could be a very profitable time of year for this Industry/ Sector look at the November Quick Test.
If we Trade what we know and let VectorVest Tell us What to Buy and When we can have much more success by Focusing on What’s Important.
As always nothing more than my 2 cents and I hope it’s of Value and Interest.