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.
Daily Stock Ratings
Every day, VectorVest assigns each stock a Buy, Sell, or Hold rating.
Typically:
Buy-rated stocks → in an uptrend.
Sell-rated stocks → trending down.
The Buy to Sell Ratio (BSR)
Proprietary indicator that tracks the relationship between the number of Buys and Sells.
Often called the “canary in the coal mine.”
Measures market breadth, showing the strength or weakness of rallies or pullbacks.
Interpretation:
BSR above 1.00 → more Buys than Sells → healthy market.
BSR below 1.00 → more Sells than Buys → market weakness.
Current condition:
BSR is below 0.20, meaning at least five Sell-rated stocks for every one Buy-rated stock.
Historical Behavior at BSR = 0.20 or Lower
When the BSR falls to 0.20 or below, the market may be nearing a bottom.
Increases the likelihood of an upside reversal.
These reversals can be sharp and create excellent buying opportunities.
Investor Guidance
Keep capital ready when BSR is this low.
Be prepared to reenter the market once the signal changes to “Safe to Buy.”
Historical examples of market upside reversals following the BSR reaching 0.20.
As shown in the chart above, historically, when the BSR falls to 0.20 or lower, the market often starts to show signs of bottoming, with the likelihood of an upside reversal beginning to outweigh the potential for further decline. These reversals can be sharp and present excellent opportunities to reenter the market following a selloff. Be sure to have capital ready for when the signal turns to “Safe to Buy.”