When To Buy & Sell

When To Buy & Sell

Things You’ll Learn:

How to identify market trends

How to identify overbought & oversold markets

Your 5 minute preparation

When To Buy & Sell

“The single most important thing to know is whether

the market is going up or down.

Everything follows from that.”

- Dr. Bart A. DiLiddo

When To Buy & Sell

Let The Trend Be Your Friend

Buy rising stocks in rising markets

Sell falling stocks in falling markets

When To Buy & Sell

The VectorVest System

Price of the VectorVest Composite (VVC)

Relative Timing (RT)

Buy to Sell Ratio (BSR)

Market Timing Indicator (MTI)

When To Buy & Sell

Price of the VectorVest Composite (VVC)

Definition: An arithmetic index of the price of

the VVC

Purpose: Portrays the market as a whole

Function: Displays the overall direction of the

market

When To Buy & Sell

Relative Timing (RT)

Definition: An indicator of price direction, magnitude and momentum

Purpose: To display the nature of a stock or market index’s short term price performance

Function: To allow immediate analysis of a short term price trend

When To Buy & Sell

Buy to Sell Ratio (BSR)

Definition: Ratio of Buy rated stocks vs. Sell rated stocks in the VVC

Purpose: Indicates the internal composition of the market

Function: Signals the overall strength of a rally or a retreat

When To Buy & Sell

Market Timing Indicator (MTI)

Combines the trends of the VVC, RT & BSR into a single indicator

Signals the underlying trend of the market:

MTI > 1.00 = Uptrend

MTI < 1.00 = Downtrend

When To Buy & Sell

Direction is the key to generating income

in any market

When To Buy & Sell

The VectorVest Market Timing Graph

Clearly shows when the market is rising, falling or

transitioning and gives explicit signals.

When To Buy & Sell

Confirmed Up (AU)

VVC higher for two consecutive 5 day periods

VVC higher than the previous day

VVC is > than its 65 Day MA

MTI is greater than 1.00

When To Buy & Sell

Confirmed Down (AU)

VVC lower for two consecutive 5 day periods

VVC lower than the previous day

VVC is < than its 65 Day MA

MTI is less than 1.00

When To Buy & Sell

DEW Timing System

Price of the VVC

Upper & Lower envelopes

30 day weighted moving average

Detrended Price Oscillator

When To Buy & Sell

DEW Up

Price of the VVC closes within Envelopes

Price of VVC closes above 30 day weighted moving average

Detrended Price Oscillator closes above 0.00

When To Buy & Sell

DEW Down

Price of the VVC closes within Envelopes

Price of VVC closes below 30 day weighted moving average

Detrended Price Oscillator closes below 0.00

When To Buy & Sell

Green Light Buyer

Up Signal =

The color in the price column of the Color Guard is GreenPrice of VVC is higher than previous day’s closing price & higher than previous

week

Down Signal = Confirmed Down Call

When To Buy & Sell

Green Light Buyer RT Kicker (AU)

Up Signal =

Green light in the price column of the Color Guard5 Day MA of RT > 20 Day MA of RT

Down Signal = Confirmed Down Call

30 Day Retirement Portfolio

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Today We Learned:

How to identify market trends

How to identify overbought & oversold

markets

Your 5 minute preparation

30 Day Retirement Portfolio

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Session # 3 Homework

Understand the Color Guard indicators

Learn to identify dates of VectorVest market timing signals

Run QuickTests over several time frames and market

conditions

Record results

30 Day Retirement Portfolio

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Session # 4 – Generating Income Part 1

Dividends

DRIP’s

Franking Credits