Profile, it’s OK to buy
high VST-Vector "B"rated
stocks. It's a good time
to go Bottom-Fishing.
This downturn lasted 18
weeks and the Price of the
VectorVest Composite fell
9.6 percent. This was the
so called "Stealth Correction."
Small-capitalization and
NASDAQ stocks were getting
hammered while the mighty
Dow Jones Industrial Average
was just doing fine, rising
8.9%. This deviation between
the blue chip stocks and
the rest of the market was
just a forerunner of what
was to happen for the next
18 months.
And so it has gone from
Turning Point to Turning
Point, from UP signal to
DOWN signal, monitoring
the market week after week,
never missing a major move.
As of the current time,
July 18, 1997, the market
completed its 12th week
of an UP move from a bottom
reached on 04/25/97. When
will this UP move end? We
don’t know. How high will
it go? We don’t know. But
we will know when it ends,
and when the next DOWN move
has begun. At that |
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time we’ll be ready to use
Stops, buy Puts, and Sell-Short.
You might believe that the
market moves in a random
fashion. It does not. While
there are periods where
the market moves up and
down from week to week,
it always happens within
the framework of an underlying
trend. The Price of the
VectorVest Composite has
reversed itself by going
down two consecutive weeks
and immediately turning
up for two straight weeks
only three times in more
than six years. Only once,
in 1994, has the Price of
the VectorVest Composite
moved up for two weeks,
and then reversed into a
downturn. These reversals
happened within a flat or
"trading range" market.
In no case were major moves
involved.
This system of timing the
market has never failed
to signal a major move...and
it never will. The reason
is quite simple. Big moves
start with little moves.
Even the apparently abrupt
crash of October 1987 occurred
nearly two months after
the market peaked in late
August 1987. Since we keep
track of every little move
the market makes, we will
never miss a big move. What
more could you ask for?
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