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Market Timing: Hold

Continue to manage existing positions, plan your next moves, and learn more about the system.

What to do during a hold

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 "Hold" scenario indicates that the market is trending lower.  Take a cautious approach, manage your current positions and wait for more favorable conditions before buying stocks. While the downtrend may intensify, leading to the need for more defensive strategies, we’re not at that point just yet.

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.