What to do during a hold

Market Timing: Hold

Now isn’t a good time to buy. Focus on managing your current stocks, check your stops, and hold off on new buys until it’s Safe to Buy.

Why Market Trend Matters

  • A rising market generally lifts most stocks. The reverse is also true.

  • In bullish conditions:

    • More stocks participate in rallies.

    • Even weaker companies can rise in price.

  • In bearish conditions:

    • Even strong, fundamentally sound stocks can decline.

The VectorVest Composite (VVC)

  • What it is:

    • An arithmetic indexed average of all the stocks in the VectorVest database.

    • Provides a broader, more accurate picture of market movement.

  • Why it matters:

    • Major indexes (e.g., Dow, S&P) can show mixed results, creating confusion.

    • The VVC cuts through that noise, showing the true market trend.

  • How VectorVest helps:

    • Market timing signals highlight the current trend.

    • Core philosophy: Buy rising stocks in a rising market; avoid buying in a downtrend.

Let the Trend Be Your Friend

  • The “Hold” scenario signals:

    • The market is showing signs of indecision.

    • Conditions are unfavorable for buying stocks.

  • What to do:

    • Be patient, but alert, opportunity may be near.

    • Build or update watchlists of strong candidates.

    • Tighten stops to protect existing bearish positions.

Market Timing Trend Graph

  • The chart shows clear orange “Hold” signals during periods of indecision and uncertainty.

  • These signals:

    • Warn you to be cautious.

    • Help prevent unnecessary losses by limiting new buying.

Market Timing Trend Graph - Found on the Homepage

In the chart above, you can see that the orange ‘Hold’ signals clearly indicate when the market is trending lower.