Mike Simonato, Ontario. Presenter: “Investing for the Long Term”, presented to the Feb. 6, 2021 International Online Forum, you can watch by CLICKING HERE.
Well, my curse on the markets continued this week. To show the craziness, on Tuesday the market sold off hard, yet Apple had a huge up day. The reason they said Apple could weather any downturn and showed the reasons why. Then it was said iPhone 13 sales would disappoint and as Apple was up huge again Wed it reversed and closed slightly lower.
Last week I shared My Trading Thesis. To me, this is the first step to being successful in the Market. After this step, you can determine what you want to buy which I have shared and nothing has changed. I still feel that Online shopping will continue strong and Shopify is King. Etsy is another one to strongly consider.
I still feel Debit/ Credit is a long-term play since that’s how people have to pay in online shopping and this is what I’m seeing in stores. For me, Paypal is still best of breed, and still deciding between Square and Mastercard.
Bob Turnbull’s ETFs are a no-brainer. I strongly urge everyone to listen to the International Forum not only to hear Stan and Dr Paul’s take on the markets, but also to hear Bob Turnbull’s update on his strategy. CLICK HERE TO WATCH THE REPLAY.
There are other areas of interest which I have shared so I won’t spend time on it at this time.
Now the Key is When to Buy.
Here is what I watch. I watch the MTI. For me the 2 key levels are 80 and 60. I have seen many times where a pullback stopped at an MTI of 80 and then the rally started again. Where are we now:
Country MTI BSR
USA 59 19
Canada 73 15
Britain 86 49
Australia 85 23
These numbers show we could be close to a bottom/ buying opportunity. Britain and Australia Views both say this is merely a healthy pullback. In USA and Canada, Earnings are still growing and the Earnings Trend Indicator is holding steady.
A lot of things I looked at tonight are at or close to key support levels and for most the volume is decreasing, both good signs however there are still some red flags out there, so it’s definitely a time to be cautious.
In my Feb International Forum Presentation, I mentioned I look at the Watchlist Average Graph for buying opportunities and how I like the 79 SMA on the weekly. For the sake of pleasing everyone, I’ll consider the End of day look as well. What do I see:
END of DAY Holding the 200 SMA Volume still strong but decreasing
WEEKLY Not quite down to the 79 SMA but close Strong Red candle this week with hefty volume.
Summary: I don’t think we’re at the bottom yet but it’s definitely s a time to be ready if we get the buy signal. For now, pay close attention to the International Forum replay for any direction and pay attention to the Tuesday Q&A as well. Watch the Home Page. This could be setting up for a nice profit opportunity, but for now, be cautious.
As always, nothing more than my 2 cents and I hope it’s of value and interest
Just like to say thanks to you for all insightful information and comments you
have posted over the years. many of us are left wondering how to read some of the
market actions, you simplify the process and encourage all to use good logic when
evaluating the situation.