This market place is starting up to imply me of later 2008, early on 2009. The VIX is raised and our own Market Timing Indicators happen to be low.  

Although we are not nearby the pitiful status which persisted back then by a long shot. For example, the VIX come to a strong outstanding higher of $80.86 on November 20, 2008 and it come to a high of "only" $45.79 on May 20, 2010 whenever the Mighty Dow fallen 376 elements.

However most of us find out through long experience that when the Buy/Sell Ratio, BSR, will go less than 0.20, the marketplace is significantly oversold and its time frame to be seeking for an mind-blowing recurring in stock prices. Without a doubt, the BSR closed at 0.12 on May 20th and the market rebounded to the extent that will the Color Guard signaled a green light in the Price column on June 3rd. Undoubtedly, this kind of rebound was in fact simply a tiny bounce in comparison to the 30-day rally which followed the November 20, 2008 selloff, but it offers great importance in that it failed to acquire into a sustainable economic recovery as did the November 2008 rally. In the two circumstances, the market moved to lower lows. In 2009, the final low occurred on March 9, 2009 and in the active illustration, the Price of the VectorVest Composite strike an intraday lower of $22.69 per share on Tuesday, June 8th. Will this be the ultimate low for this economic downturn?

It could be, but don't bet the farm. The good news is that the June 8th intraday low of $22.69 was two cents higher than the previous intraday low of $22.67 hit on May 25th. The bad news is that the BSR closed at 0.13 on May 25th and 0.11 on June 8th. I would have liked to see it close above 0.13, but there's still more good news. The market has hit higher intraday highs and higher intraday lows each day since Tuesday, June 8th.

The best news is that the Futures took a real shot this morning due to a poor Retail Sales report, but recovered quickly on a better-than-expected Consumer Sentiment report. This shows that bargain hunters are alive and well. But they aren't as greedy as they should be. Upside volume has been weak and leads me to label the June 8th low as a Tentative Bottom.

Toning down THE TIGER Together with BEAR CALL CREDIT SPREADS

Because of to the excessive unpredictability we were encountering in late 2008, we made a sequence of presentations together with the theme of "Taming the Tiger," i.e., dealing with unpredictability. The technique to do this, we said, has been to carry out low-risk trades by hedging your bets. On 12/05/08, for instance, we illustrated how in order to shield yourself by securing your short stock trades by getting out-of-the-money Call Alternatives. We then accompanied way up with much more presentations incorporating this theme. These days are the point in time to re-visit this low risk technique to making money. To find how it is really done, visit the VectorVest University in order to see Mr. Glenn Tompkins, who, by the way presented our first Taming the Tiger presentation, provide this week's excellent "Strategy of the Week" presentation, "Taming the Tiger with Bear Call Credit Spreads."

Are you looking for to learn more on the subject of stock chart analysis or stock market software? Begin here: http://www.vectorvest.com

The VectorVest RealTime Derby appeared to be very first proven during the New York Traders Expo in February 2009. This comes with happen to be an fantastic and fascinating approach ever ended up being. More than that, it also has established to be an extraordinary resource of information and facts.

In a day-to-day basis, it monitors and also displays the results of 185 10-stock portfolios tick-by-tick through the point in time the market starts up until it ends at 4:00 PM. With the Derby, you will discover completely no issue discovering what is actually going on in the market place and today was no distinct. The major indexes opened sharply lower, however , the Derby has been exhibiting Bullish approaches as the greatest gainers in early trading.

The leading Strategy was "Best Performers > $1.00." I clicked on the performance bar to see which stocks were in the portfolio and saw that Power-One, PWER, had gapped up about 20% at the open and it wasn't pulling back. I took a look at its one-year graph and saw that this stock was trading at about $1.30 per share last September and it's now over $12. Did I miss a good stock here?

Sure I missed the early moves, but the stock still looks interesting to me. It has gapped higher on high volume several times since last September and certainly looks like it's going higher. I bought some. Then I opened the Tote Board. This tool is my favorite part of the Derby. It shows the cumulative performance of all the Strategies over any time period since August 18, 2009. The calendar for selecting the beginning and end dates of the test periods was updated recently to show the C/Up and C/Dn dates given by our Market Timing System. For example, the best performing Strategy for the Upwave which started on 02/19/10 and ended on 05/07/10 was none other than "El Cheapo Cheapos," with a Total Gain of 51.95%.

Are you kidding me? What kind of record does it have? Well along with its terrific gain, it had 62% Winning Days, 42% Winning Trades, a Maximum Drawdown of 27.43% and an Efficiency of 18.92. An Efficiency of 18.92, what's that all about? It's something that VectorVest calculates which combines the Percent Winning Days, the Percent Winning Trades and

Maximum Drawdown Percentage into a single item called the Efficiency Factor.Is 18.92 any good? Well it's not bad, but the next biggest gainer is "Thornton's Thunder," which had a Total Gain of 49.23% and has an Efficiency of 24.84. From what I can see, Thornton's Thunder had the best combination of Total Gain Percent and Efficiency during that particular up wave.

Interesting. What Strategy had the best Efficiency over that time period? "Great Stocks," with an Efficiency Factor of 32.06, but it had a Total Gain of only 3.96%. So it seems that there's a trade-off between Total Gain and Efficiency.

Of course there is, we've seen it over and over again. The most effective Strategies, those that give the highest gains, are those which return volatile, low-priced stocks and the most efficient Strategies, those that produce relatively modest gains, are those which return less volatile, higher-priced stocks. That's no surprise, but is it possible to use the RealTime Derby to find Strategies that will be both effective and efficient? Yes, I believe so. Next week I'll report some surprising things I discovered by using the Tote Board and The Efficiency Factor.

EFFICIENT PERFORMERS

The Price of the VectorVest Composite hit a low point on July 6th; then shot higher for several days. It was time to go long. When would you have gone long and what Strategy would you have chosen? Let's see what Mr. Jerry D'Ambrosio did to make his selections. Visit the VectorVest University to see this week's "Strategy of the Week" presentation: "Efficient Performers."

MANAGING THE MONEY MAKER

Last week, we illustrated three trades on selling Covered Calls which were based on using the Options Rate of Return tool and the "Optionable 2x4s" Strategy. Two of the trades were profitable, one was not. None of the trades were managed. This week we will illustrate how all of these trades would have been profitable, had we used the portfolio management guidelines given in the PayDay Portfolio Report.

Author writes frequently on Stock Analysis and Vectorvest Reviews. To know more on the topic from author, visit  - http://www.vectorvest.com

BP gapped higher at the open this morning and the MACD histogram on my Intraday graph in VectorVest 7 RealTime turned positive at about $32.40 per share. Is now the time to buy?

Some investors think so. The stock hit an intraday low of $29.00 per share on June 9th and it has been consolidating ever since. A big-time investor, who invests in distressed companies, appeared on CNBC's Fast Money show last week, saying that BP has incredible financial strength, it will survive and he's buying the stock in large chunks. I believe his comments had a lot to do with stifling BP's downward movement. Moreover, Ms. Maria Bartiromo also said last week that Dubai was rumored to be buying the stock.

On the other hand, numerous money managers and other assorted guests have appeared on CNBC, saying they are not buyers...it's too dangerous, its problems aren't going away soon and it may go bankrupt. So when would be a good time to buy this stock?

The time to buy this stock is after it has stopped going down in Price. When, pray tell, would that be? It has stopped going down when it starts going up, and that's not a joke. For example, the positive MACD histogram indicates that BP's Price has started to go up. But it's a very preliminary signal that only Aggressive Investors or Traders would use. I've been Short BP since mid-May and I covered my position this morning, but I'm not buying just yet.

As for Prudent Investors, they should consider buying this stock only on a much stronger, more reliable indication that it has stopped going down and has started to go up, i.e., when it passes, "The Acid Test." I wrote an essay about "The Acid Test" on December 8, 2000 and it is well worth reading.

To see how well "The Acid Test" works, let's take a look at Yahoo!, for example. Please access an All-Weekly Graph of YHOO. Delete Stop Price and RT, change MA3 to a 30-week period and add MA1 to show a 10-week moving average. Now remove Price so that you can clearly see the 10-week and 30-week MAs. Note that the 10-week MA crossed down through the 30-week MA on 05/12/00 at $62.84 per share and stayed below the 30-week MA until 12/21/01 when YHOO was at $8.46 per share. It had an "H" Rec and the rally failed. VectorVest finally gave YHOO a "B" Rec on 10/11/02 even though the 10-week MA was below the 30-week MA. This up move lasted until 03/04/05, when YHOO was $32.36 per share. A similar analysis on BP indicates that downturn has just begun and it could be a while before "The Acid Test" signals When to Buy BP.

P.S. While you wait for BP to get a "B" signal, you should consider buying Clean Harbors, CLH, who should make a fortune from the disaster.

THE PAYDAY PORTFOLIO REPORT

I gave my presentation on the PayDay Portfolio last Saturday and it was very well received. It was videotaped and is now being edited. We hope to have the report, including PowerPoint slides and CD, ready for delivery shortly. As of last Friday, June 11, 2010, the $100,000 paper portfolio which was started on January 8, 2010 has received $16,159.00 in deposits from Dividends and Option Premiums.

SWING TRADING WITH KILLER BREAKOUTS

Three weeks ago, Jerry D'Ambrosio gave a dazzling presentation on Killer Crossovers. Not to be outdone, Mr. Todd Shaffer, Manager of Research, has been working feverishly on an equally dazzling set of searches. So join Mr. Shaffer at the VectorVest University to see his equally dazzling "Strategy of the Week" presentation, "Swing Trading with Killer Breakouts."

You can learn more about Stock Charting Software and stock market software, by visiting - http://www.vectorvest.com

Hardly a day goes by that I don't hear a discussion or read an article about "the" forthcoming double-dip recession and today was no exception. The market tanked on more bad economic news and every self-appointed expert on the history of the Depression alleges to see striking similarities with today's political, economic and financial conditions. That may be so, but I do not believe a double-dip recession is likely to happen.

Yes, the economy is slowing down and even the Federal Reserve has lowered its forecast of economic growth. Unemployment is still near 10%, the housing market is still weak, retail sales have slipped for two consecutive months and consumer sentiment is sinking fast. But inflation is benign, interest rates are extraordinarily low and corporate earnings are rising. This combination of factors is bullish, very bullish, for stock prices.

Supporters of the double-dip theory can talk all they want about government debt, slowing consumer spending, the oil spill, LeBron James or whatever. It doesn't drive the economy like inflation, interest rates and earnings do. So why is the economy slowing?

The economy is slowing because small business owners are not spending money and creating jobs as they have done in the past. They are concerned about the political turmoil within the country and uncertain of the future. Those who need the money to grow, can't get it. Those who can get the money, don't want it. Those who have it, won't spend it. The traditional effect low inflation and interest rates have on stimulating the economy will be inhibited until government policies become more business friendly. So where do we go from here?

It is my contention that regardless of government policies, a double-dip recession will not occur as long as inflation remains benign, interest rates stay low and corporate earnings continue to rise. The Fed has repeatedly said it will keep interest rates low as long as it takes to keep the economy growing. That's great, but it may not be possible. They can control interest rates, but they cannot control inflation.

If inflation turns into deflation, the economy will shrink. If inflation takes off, the Fed will be forced into raising interest rates. When that happens, a double-dip recession is a virtual certainty. So it all depends upon what inflation does. It's The Wildcard.

MOVING TO THE SIDELINES

I hate to say this, but it appears that we have gotten caught within the jaws of another Wicked Wedge. What does this mean and what to do now? Mr. Bryan Barnes, Consultant and Instructor, will explain what it all means and what to do now. So visit the VectorVest University to see this week's insightful "Strategy of the Week" presentation: "Moving to the Sidelines."

Want to learn about Stock Market Software or Stock Chart Analysis? Start from - http://www.vectorvest.com

These Holy Grail most typically associated with share trading is usually the fully created structure in forex currency trading stocks that will consistently delivers big dividends together with tolerable draw-downs. Despite the fact that I have do not professed to be able to become looking with regard to the Holy Grail, I have got prepared on the subject of practically each aspect of forex strategy improvement, in addition to, in reality, many tutor the matter with a lot of our Technical Analysis Course.

Whereas I keep in mind, the first of all measures in establishing a excellent trading program are lying in knowing any time to proceed longer in addition to once to move quite short and also choosing the recommended Tool in order to use intended for choosing the best stocks. Wealth management simple rules are generally then employed so that you can lessen associated risk as well as optimise results.

In the past, many hold made use of most Market Timing Program in order to acknowledge while to assist you to head to longer or maybe shorter in addition to the UniSearch Tool together together with QuickTest to be able to get the almost all promising Techniques for you to take advantage of. The Back-Testing aspects in Portfolio Manager are usually then utilized for you to diminish probability plus increase functionality. The Simulation functions all of the involving these types of functions successfully and even is the greatest instrument meant for stock investing system betterment.

The VectorVest RealTime Derby, however, offers a latest aspect to help you the process. The idea tracks along with shows the consistent overall performance of 185 10-stock portfolios, tick-by-tick, as a result of the initial bell for you to the market place's closing. The facts with every day's overall performance is normally stored through a Derby Tote Panel which often lets all of us to analysis the final overall performance connected with every profile above every selected duration time.

Observation of the top 5 undertaking stock portfolios to find the five-day time periods allows a marketplace timing structure unto by itself. In support of example, the market is definitely bullish when all five portfolios tend to be extracted through Bullish Techniques. That is bearish when ever most five portfolios tend to be based on through Bearish Plans. This is in change any time they will are usually mixed. These types of findings accomplish not necessarily contradiction together with the related information provided as a result of the Color Guard, however accentuate it.

The Tote Board performance data additionally complements the succeed completed simply by the QuickTest tool. Even as the Tote Board sums the every day results involving the 10-stock portfolios designed each one day, QuickTest showcases the effectiveness of a individual l0-stock stock portfolio through the time it was constructed to the finish of the time frame course. Consequently, the results usually are numerous. Which will information arranged is certainly a far better pointer of long run functionality?

Subsequently, everyone witnessed past week's "Strategy of the Week" demonstration. It showed which usually getting prolonged on July 12th with a Strategy specific right from the Tote Board's list of 5-day top notch undertaking stock portfolios designed wonderful successes. What precisely normally would the series of all five QuickTests by the close of July 2nd to the near of July 12th have told me? (This sequence of QuickTests was run on the Simulator and is called "Quick Sims.") Here are the results:

Tote Board                                                                      Quick Sims
Jail Break - No Contra ETFs - 16.56%                      S&P600 Small Cap/RT - 14.71%
S&P600 Small Cap/RT - 15.56%                               Silber's Singles/BMB - 10.13%
Blyar's Bottom Feeders/BMB - 15.22%                     Pirates Long - 10.08%
Russell 2000/RT - 14.83%                                          Odd Fellows Long - 9.41%
Bottoms Up - 13.49%                                                    S&P100/RT - 9.31%
Silber's Singles/BMB - 11.82%                                   Bottoms Up - 9.26%
Jubilee - 10.95%                                                            Blyar's Bottom Feeders/BMB - 8.65%
VST Mighty Mites - 10.89%                                          Jail Break - No Contra ETFs - 8.55%
Odd Fellows Long - 10.46%                                       Jubilee - 8.08%
Pirates Long - 9.63%                                                   S&P500/RT - 7.93%

Options first of all statement is which eight among the top notch 10 Tote Board Strategies likewise created the top notch 10 of the Quick Sims record. However, the S&P600 Smaller Cap/RT Technique has been the primarily 1 positioned located in the leading 5 performers of both data. Since July 12th, it is the 2nd major gainer in the Tote Board with 17.37% because regarding yesterday. Quick Test also revealed a fine gain of 12.11%.

Jail Break - No Contra ETFs, the biggest 5-day winner ala the Tote Board, came in fourth place with a Tote Board gain of 15.69% since July 12th and a gain of 6.85% ala QuickTest. Finally, Silber's Singles/BMB, the second highest stock ala QuickTest, showed a gain of 6.18% since July 12th ala the Tote Board and -0.48% ala QuickTest.

Hence which usually is the far better sign associated with long term effectiveness? That may be difficult for you to say through which means that tiny info, though So i'm bending towards the Tote Board. Though, I have not used performance in consideration in this kind of consideration as well as it may well be The Difference Maker.

You can learn more about Stock Market Software and Stock Chart Analysis, by visiting - http://www.vectorvest.com

A young friend of mine was informed last Wednesday that her contract was not being renewed. She had lost her job. I felt very bad about that and wondered what I could do to help her out.

I was flying home from the Las Vegas Money Show on May 15th and I read an article in the Wall Street Journal, pg. W3, entitled, "A Lament for the Class of 2010." It relates the tale of a young man who went to an Ivy League college, graduated, but is now living at home with his parents and is now working "as an intern at a street fair on the Lower East Side of New York City."

The article goes on to say, "Over the next few weeks, hundreds of thousands of Millennials will graduate from institutions of higher learning. They will celebrate for several days, perhaps several weeks. Then they will enter a labor force that neither wants nor needs them. They will enter an economy where roughly 17% of people aged 20 through 24 do not have a job, and where two million college graduates are unemployed. They will enter a world where they will compete tooth and nail for jobs as waitresses, pizza delivery men, file clerks, bouncers, trainee busboys, assistant baristas, interns at bodegas." Imagine, spending over $200,000 on an Ivy League education and working at a job where you're competing with high school dropouts.

This article rang a bell with me because I had spoken to several customers at the Money Show who aren't going to let their children or grand children want for being self sufficient. They're teaching them how to make money in the stock market. The primary goal, of course, is to make life easier for mom and dad by building a fund to help pay for college, but they are also teaching their loved ones to become financially independent. And this brings me back to my young friend who just lost her job. Wouldn't it be nice if she knew how to make money in the stock market and didn't have to depend on a job as a sole source of income? Of course it would! So I'm going to invite her to be my guest at the next VectorVest Clinic given here in the Akron-Cleveland area.

But why stop there? Why not allow you to bring a guest, someone who is not or ever was a subscriber to VectorVest, to one of our One Day Investment Clinics free of charge? They'd learn more about making money in stocks in one day than they would had they read all the investing books sold on Amazon.com. So what's in it for you? If you're bringing a "stay at home college grad," it could save you a lot of money. If you're bringing a neighbor, an old friend, or anybody else who is not or ever was a subscriber to VectorVest, we want you to get more than just the satisfaction of doing him/her a favor. We're going to give you a $29.00 Savings Certificate which you could apply toward the purchase of any VectorVest Product or Service.

What could be better than that? Come to the Clinic. Learn a lot of good stuff. Enjoy Yourself and Bring a Friend Free.

SURVIVING THE TENTATIVE BOTTOM

Does it pay to go with the flow? I would have to say yes because that's what we do. But the market gave us a head fake in mid-June that would have done LeBron James proud. Thanks to our Market Timing System we weren't totally faked out. I called the mid-June reversal a "Tentative Bottom" in my June 11th essay and let the Color Guard be our guide. Yes, it was possible to make money over the last few weeks and Mr. Dan Misch, one of our best instructors, will show us how easy it was to do. So visit the VectorVest University to see this week's excellent "Strategy of the Week" presentation: "Surviving the Tentative Bottom."

Author writes regularly about finance and Stock Market Software related topics. For more information about stock trading software, Stock Charting Software, stock analysis software visit - http://www.vectorvest.com

A Financial Advisor, Mr. Adam Butler of Butler Philbrick Associates, appeared on CNBC and said that "Our models suggest there is almost a 50% chance that a couple will run out of funds before they die if they adhere to a traditional financial plan." The reasons, he said, are that traditional financial plans miss two pretty serious risks: The risk they might live too long and the risk of lower than expected market returns. Traditional financial plans generally assume a linear sequence of financial returns of say, seven percent year-in and year-out, and that is unlikely to occur. So what does one do if they dramatically underestimate what they need?

Mr. Butler said retirees should put their money in two layers. The first layer should be the "guaranteed" layer for food, shelter and so on. The second layer should include an allocation of riskier assets which provide an upside for "retirement life style needs," such as bequests, charitable giving, etc. He advocates investors broaden their asset allocations to include REITS, commodities and international stocks, in addition to traditional domestic stocks, bonds and cash.

He also believes investors should have some sort of systematic exit strategy for each asset class so that they can move to the sidelines when market risk is high and move back in when market risk is favorable.

Finally, he said investors also should consider a third layer, a "momentum" overlay, which can really increase returns with a small increase in risks. My goodness, was he talking about market timing and the use of Options to augment income?

Much of this interview came to me as a breath of fresh air because most of the retirement plans I've read fail to advise retirees of the extreme importance of being able to augment their retirement income by some independent means. You simply cannot run the risk of running out of money and the returns you will get from annuities, dividends and bonds are not going to provide the security you should have. Of course, you could always work at McDonalds or Wal-Mart, but I prefer to make my extra money by investing in the stock market. I presume that you do too. That's why we have been making presentations on retirement strategies at the Money Shows and VectorVest events.

We will be making three presentations on the subject of retirement at the Money Show in San Francisco on Friday, August 20th and we will also be giving a One-Day Options Course on Sunday, August 22nd. "The PayDay Portfolio" will be featured at the Options Course. This portfolio was started with $100,000 on January 8, 2010, and had a total value of $122,364 as of yesterday. It was down 1.69% on stock trades, but has garnered $24,470 in cash deposits so far. You may learn more about this portfolio by reading my essay of June 4, 2010.

You may also register for the Money Show by clicking on the link shown above under Coming Events. We're going to have a great series of talks in San Francisco, and it's all going to start with Planning for a Secure Retirement.

P.S. The PayDay Portfolio Report has been completed and will be shipped out this coming week. We have had many requests for this report from subscribers who have not taken our Options Course, but claim to know how to trade Options and want to buy the report. If you are among them, you may buy the report for $95.00. If you have previously attended a VectorVest Options Course or bought our Options Course CD set, you may purchase the report for only $29.00.

Want to learn about Stock Market Software and Stock Chart Analysis? Start here: http://www.vectorvest.com

With the changing scenario of financial investments and more systematic economic investments are used today. Now, the investment groups are increasingly using methods such as decision analysis, portfolio management and other options analysis for better decision making and allocation of capital growth.

The aim of nearly all investment appraisals is to make investment decisions or advising people to make their own investment decisions. Therefore, there is a strong relationship between technical analysis and equity portfolio management.

A key aspect of improving the performance of the management of risk is investment objective is to ensure the integration of these analysis techniques. You need a portfolio analysis good to know what level of risk-taking is appropriate.

Important feature of Decision Analysis and Portfolio Management, associates directly to choose the best investment choices. Decision analysis, we evaluate the scheme and to apply the policy to take business risks. If you want to know the company’s approach to financial risk is important in terms of selecting a portfolio of appropriate activities. This links to power analysis and portfolio management to improve the overall process of decision and ultimately business performance.

There are many analyses of stocks and portfolio management system, which are designed to produce huge profits. This is an excellent system for selecting stocks to buy and quick. In practice, an idea may be associated with investment ideas for their own training in the field itself. Portfolio management requires a lot of thought about the details, information technology and requires administrative expertise also.

Finding the resources to learn more about Stock Analysis and Portfolio Management - Stock Market Software