STRATEGY OF THE WEEK: “TRADING HIGHER HIGHS AND LOWER LOWS.”
Finding stocks, industries and sectors hitting new highs and lows is a powerful approach. But, which type should you use: a 52-week high, a 13-week high, or maybe a 5-day high? Todd Shaffer, Manager of Research, showed us some valuable approaches in this week’s “Special Presentation” titled, “Trading Higher Highs and Lower Lows” for more insights on using this powerful tool.
Our Weekly Q&A. View Todd’s presentation from the VIEWS Tab or VectorVest University, then join me for our live Q&A webcast on Tuesday, November 17th at 12:30PM EST. We’ll answer your questions related to this strategy presentation and show a few examples. We’ll also review current market conditions and analyze a few stocks. CLICK HERE TO REGISTER.
FORUM NOTES: VectorVest members loved our first Canada User Group Forum! For a limited time, you can still get the recording link in case you missed it or if you just want to review the outstanding presentations on Bottom Fishing and Jake’s Patent Winners. CLICK HERE TO GET THE RECORDING. Don’t miss our next Forum, Saturday, Dec. 5 at 11:00 a.m. Eastern. We’ll have a number of member presentations including the 3/8 EMA crossover technique, analysis of the Energy Sector and industry groups such as Banks – Investment and Gold/Silver. We’ll do a market review and study a few U.S. and Canada Game Changers – Fundamental Characteristics and Technical Analysis of Canadian and U.S. stocks that went on to achieve monster gains. Reserve Your Seat Today! Space is limited.
Market Conditions Continue to Worsen. The TSX fell all five trading sessions last week, cementing another 3.5% loss. VectorVest does not advocate buying stocks at this time. Despite a rising energy sector on Friday, last week’s oil report by the IEA (International Energy Agency) was not good. Oil is trading near its lowest level in two months and crude stockpiles rose three times more than forecast. Inventories in developed nations have reached a record.
HOD AS A HEDGE.
HOD, Horizons 2X leveraged inverse ETF, has proven a good hedge for anyone trying to hold onto their petroleum stocks when the price of crude is falling. HOD has just pulled above its 40-DMA and RT above 1.0, both bullish signs. On Friday HOD got a new BUY REC from VectorVest. Just be aware that HOD can be volatile because of the leverage. Investors should only buy when oil prices are falling and HOD is rising. Important to maintain a reasonably tight Stop Loss.
13 Stocks That Are Breaking Down. Finally, in falling markets like we’re experiencing again, it’s important to monitor our portfolio of stocks regularly and maintain effective sell rules. In Video 2 of our Successful Investing Course we learn to heed the four warding signs. The video is titled, Weed Your Portfolio. You can find it on both the Welcome Tab and the Training Tab. Below are 13 stocks that are showing two or three of the first 3 warning signs: 1. Increasing Volatility; 2. Price breaking below the 40-DMA; and 3. RT falling below 1.0. The fourth warning is our ‘line in the sand’ SELL REC. The 13 stocks below have reasonably good fundamentals but have broken down and are starting to show early warning signs.
DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades must not be considered as recommendations. You should always do your own analysis and invest based on your own risk tolerance, investment style, goals and time horizon. 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