Last week I said that my goal for 2010 was to help you learn an end-of-day stock selection and portfolio management system that was consistently profitable and easy to do. The "Green Light Buyer" technique, introduced in my August 21, 2009 essay, was a major step in this direction. It is based upon the idea of buying rising stocks in a rising market, and our tests have shown that it consistently produced profits and was very easy to do.

However, it still left the end-of-day trader, a.k.a., The Midnight Cowboy, in the position of assuming that the market would go up the next day. While the odds of having an up day the day after receiving a green light in the Price column of the Color Guard would be in your favor, there are no guarantees that an up day would actually occur. Therefore, we have urged you to check the stock futures before the market opens to get a better idea of the market's likely direction.

In addition to checking the Color Guard and the stock futures, we also suggested using the technique of buying stocks only when they have gone above their previous day's high. The benefit of this technique, i.e., ensuring that you are buying rising stocks, was illustrated in the "Strategy of the Week" presentations of 11/27/09 and 12/18/09. We explained how an end-of-day trader might execute these trades by placing Buy Stop Limit orders on 12/24/2009.

Last week, I introduced a new Strategy, "Higher Ups," that finds top VST stocks that have gone above their previous day's high. "Higher Ups" is an intriguing little Strategy but I found it to be too restrictive in that it looked at only five stocks and required a stock's price go more than 1% above the previous day's high. So I created a new, but similar, search which looks at the top 10 VST stocks and removes the 1% requirement. I called it "Higher Highs" and we put it into the Strategies - Price Volume Group of the UniSearch tool.

Although these Strategies were created with the thought of helping end-of-day traders, I have found the "Higher Highs" strategy to be extremely useful in working with VectorVest RealTime. To be clear, end-of-day traders must select their stocks and place their orders before the market opens, but users of VectorVest RealTime can run their Strategies, modified to find higher highs, any time they wish and immediately see which stocks are hitting Higher Highs.

USING HIGHER HIGHS IN VECTORVEST REALTIME.
To see exactly how the "Higher Highs" strategy works, what it does and what you can do with it, please join Mr. Dan Misch, Instructor and Product Support Representative, at the VectorVest University to see this week's terrific "Strategy of the Week" presentation: "Using Higher Highs in VectorVest RealTime."