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Market Timing: Get Ready

Time to get your shopping list ready and be prepared to buy stocks when it’s safe to buy.

Why am I getting ready to buy?

One key factor that can influence your chances of success in the market is the overall market trend. As the saying goes, "a rising tide lifts all boats." Similarly, when the stock market is on an upward trajectory, more stocks tend to participate in the rally than those that decline. Investing during a bullish rising market increases the likelihood of selecting stocks that rise in price, even those with weaker fundamentals. Conversely, when the market is declining, even top-performing stocks can suffer.

The VectorVest Composite (VVC), is our broad-market index and the foundation of our stock market analysis. It is an arithmetic indexed average of all the stocks in our database. The VVC provides a more accurate reflection of the overall market's movement. At times, you might notice major indexes showing mixed results—such as the Dow Jones declining while the S&P rises—leading to confusion about the market's true direction. By following the VVC, we gain a clearer understanding of broader market trend. VectorVest has developed market timing signals to identify the current trend of the market movements, thereby enhancing your chances of success. The core philosophy of VectorVest is to buy stocks that are rising in price, in a rising market. We do not advocate buying stocks when the market is in a downward trend.

Let the trend be your friend

The "Get Ready" scenario indicates that the market is trending higher, but not accelerating day over day so we should hold off on adding more positions to our portfolios until conditions improve. Now is the time to prepare for when it becomes “Safe to Buy.”

Market Timing Trend Graph - Found on the Homepage

As illustrated in the chart below, the green "Safe to Buy" signals clearly show when the market is trending upward and gaining momentum, turning yellow if the market begins to slow. The "Get Ready" signals help you avoid buying stocks if the uptrend shifts into a downturn. Investing in rising stocks within a rising market is a key strategy for long-term success.