VectorVest prides itself in guiding investors on when to buy, what to buy and when to sell stocks. We believe in buying rising stocks in rising markets. The Color Guard is prominently displayed on the Home Page and is designed to provide fast, visual information on market direction. When I buy a stock, I want to see it close the day with a gain. So I want to be absolutely certain that both the market and the stock are rising at the very instant I hit the Buy button.
This is easy to do with VectorVest 7 RealTime. First, I check the Color Guard. It is updated every five seconds, so it’s easy to see if it is Bullish, Bearish or Neutral. (The specific conditions for these terms are defined in Section E. of the Color Guard Special Report, located under the Views tab.) Next, I check the 1-Day, 1 minute, Intraday set-up of the Market Timing graph. If it’s rising from yesterday’s close, I’m looking to buy, but not before I turn to my secret weapon: the RealTime Derby.
The VectorVest RealTime Derby is a phenomenal market timing tool. It can signal changes in market direction better than anything I’ve ever seen. It can even give early warning signals on reversal days. The last thing I want to do is to buy long on a big opening rally; then see the market turn against me by the end of the day. For years, we have advised our subscribers to wait until 30 minutes after the market opens before buying any stocks. This lessens your chances of getting whip-sawed, but it’s not as good as using the Derby.
The ability of the Derby to detect imminent reversals has been cited in a number of my essays and most recently in my essay of June 8, 2012 called, “Anatomy of a Reversal.” This phenomenon, as well as several other market timing techniques, is described on page 20 of the RealTime Derby Special Report. If a reversal is not indicated by the Derby, I’ll check the trend of the stock I plan to buy.
I do this basically by looking at both long and short-term graphs. I like to buy stocks with smooth, rising price patterns and steadily rising forecasted earnings. I always look at CI because I want to see it going up. Finally, I’ll right click on the stock and click on “View Full Stock Analysis.” Bingo, I’m presented with two graphs: the stock graph to my left and the Industry Group to my right. I always want to make sure the Industry Group is rising as well as the stock and the market.
It’s like the old proverb: “If you give a man a fish you feed him for a day. If you teach a man to fish you feed him for a lifetime.” We want you to make money for a lifetime. Learn How to Buy Stocks.