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.
The Market is Looking Toppy
VectorVest tracks a proprietary market trend indicator called the Market Timing Indicator (MTI).
The MTI measures:
Trends in the VectorVest Composite (VVC).
The Relative Timing (RT) of the VVC.
The Buy to Sell Ratio (BSR).
The MTI is scaled from 0 to 2:
Above 1 → Market’s underlying trend is Up.
Below 1 → Market’s underlying trend is Down.
MTI at 1.5 or Higher
Historically signals the market may be nearing a top.
The uptrend begins to decelerate.
Downside risks often outweigh upside potential.
Portfolio Guidance
By the time MTI reaches 1.5, your portfolio should already be largely invested.
Less need to add new positions aggressively.
Because the trend is still technically Up, it is still acceptable to buy stocks—but with caution.
Historical examples of market downside reversals following the MTI reaching 1.50.
Historically, when the MTI reaches 1.50 or higher, the market often begins to show signs of peaking, with the likelihood of a downside reversal starting to outweigh further upside potential. By the time the MTI reaches 1.50, portfolios should be largely invested, reducing the need to actively add new positions. However, since the market trend is still technically "Up," it’s still OK to buy stocks with caution.