by Dr. Bart DiLiddo
Friday, 03/20/2009
The Price of the VectorVest Composite flashed a green light and gave a preliminary signal of a sustainable uptrend last Tuesday, just as we said it probably would. Now we need to see the Buy to Sell Ratio, BSR, go above 1.00 to give us a Confirmed Up, C/Up, signal. I expected that getting a C/Up signal soon was nothing short of a cinch until CNBC began showing the crazies in Congress yesterday talking about taxing greedy executives 90% of their bonus awards. Now I'm not so sure of what will happen in the short-term. But I do know that sooner or later we will get a C/Up signal. What should we do when it does come?
Personally, I'm going to put a chunk of my money into the Yellow Brick Road, YBR. No, I haven't forgotten the problems we encountered on our last trip and I don't want them to happen again. So the first thing VectorVest is going to do is add some more lanes to the YBR. A major problem in that last episode was that thousands of people tried to buy the same stocks at the same time. We learned a long time ago that Prices just go crazy when that happens and it's not good for anybody but the market maker. So we're going to provide alternative strategies for you to use for C/Up or C/Dn situations. Mr. Glenn Tompkins will be presenting these Strategies in this week's "Strategy of the Week" Presentation and I believe you'll be pleased by what you see.
Given the size of our user base, however, there still could be a traffic jam at the open. So you, dear reader, should also consider some of the other suggestions posted in last week's essay, "Avoiding the Stampede." The first suggestion was to get in before the crowd. Don't be afraid to start buying some stocks before we actually get the C/Up signal. Sure the risk may be a tad higher, but you'll be getting better prices and probably make more money. And you don't need to buy 10 stocks like we do in our illustrations. You can cherry-pick if you wish and buy any of the top stocks from any of the Strategies. The whole idea is to do what makes sense to you, but don't be a lemming.
I can't predict when the next C/Up signal will arrive, but I can tell you this: I'll be ready to be Off To See The Wizard.