Market Timing: Be Defensive
Now is the time to sit on the sidelines, tighten stops, or play the market to the downside.
Market Direction as the Primary Driver
The overall market trend strongly influences your chances of success.
Saying to remember: “A rising tide lifts all boats.”
In an upward market, more stocks rise than fall, increasing the likelihood of picking winners.
In a declining market, even top-performing stocks can struggle.
The VectorVest Composite (VVC)
The VVC is VectorVest’s broad-market index and the foundation of its stock market analysis.
It is an arithmetic indexed average of all the stocks in the VectorVest database.
Because it includes a wide breadth of stocks, it reflects the overall market more accurately than other major indexes.
Why the VVC Matters
Traditional indexes (e.g., Dow Jones, S&P 500) can show mixed results, leading to confusion about the market’s true direction.
The VVC provides a clearer view of the overall trend.
Market Timing Signals
VectorVest has developed market timing signals based on VVC movements.
These signals help identify the current trend of the market.
Core philosophy:
Buy rising stocks in a rising market.
Avoid buying when the market is in a downward trend.
Definition of “Trending Down”
VVC is moving lower on a week-over-week basis.