What is Vector Vest:    VectorVest is the tool you need to make Faster, Smarter, Better stock market decisions for better profits. With VectorVest you don’t have to spend hours trying to pick the right stocks.

VectorVest has already done the work for many people. In fact, VectorVest is the only system that analyzes ranks and graphs over 18,300 stocks everyday for Value, Safety and Timing. VectorVest is the only system that combines
fundamental and technical analysis to give you a complete picture of every stock and a clear Buy, Sell or Hold recommendation. And VectorVest is the only system you can trust to keep you on the right side of the market.

What is VectorVest all about?

According to Dr. Bart DiLiddo, who created VectorVest; “When I designed this system I did not have time to look through thousands of stocks. I needed answers fast and that’s why I created VectorVest”

In 1978, Dr. Bart DiLiddo, Ph.D. began to create mathematical models that clearly define EXACTLY what causes a stock’s price to rise or fall. No opinions. No guesswork.

He discovered that all the influencing factors could be summed up in mathematical value models, mathematical safety models and mathematical timing models. After testing and retesting, he discovered that the models worked.

Profits were reaped even during the worst recent stock market chaos. This stock market trend analysis system has been proven over and over again.

The result is Maximum Profit with Minimum Risk. It’s the most powerful stock analysis software available anywhere at any price!

This amazing software is for any kind of individual investor. It’s easy to use. Just two or three clicks of your mouse and you’ve got a world of powerful, objective information at your fingertips.

You get clear BUY signals, but you also get clear SELL or HOLD signals. This is important. Most investment advisors will tell you to buy, but often too late. And they might tell you to sell again, often too late.

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With P/E ratios is without question a useless approach to review stock value. However, almost everyone really does it. The market desire for P/E ratios is so persistent that even we include them in our database. But our P/E's are different from what you'll discover in your newspapers.

One particular good reason for the distinction in P/E's is that we use 12-month forecasted income, not income that is based primarily upon 12-month trailing performance. Everyone knows that the stock market is a forward looking beast. Traders gamble on potential future, not really the past. So why make a barely useful number less informative than it could be? One additional differentiation is that VectorVest a P/E ratio for each and every stock. For a variety of reasons, including low, zero or negative earnings, you will not find P/E data for about 20% of the stocks listed in media.

Although the main convincing factor is P/E ratios are barely beneficial is that the review of P/E's is completely subjective. There is no independent standard for knowing whether a P/E ratio is too high or too low. Any individual may provide you any kind of number of factors why they feel a stock's P/E is too high or too low, and who has to disagree with them?

Years ago, we learned that anyone could tell whether a stock was over or undervalued by dividing its P/E ratio by its earnings growth rate. The theory was that high P/E ratios could be justified by high revenue growth rates. So a stock was deemed to be overvalued when the (P/E)/Growth ratio was more than 1.00. This (P/E)/Growth ratio test was made popular by Mr. Peter Lynch, the fantastic manager of the Fidelity Magellan Mutual Fund, and it became known as the PEG ratio. The idea of comparing a stock's P/E to its earnings growth rate made sense to me, so I was off to plotting earnings data on semi-log paper and calculating growth rates like you wouldn't believe. Yet, quite a few things are troubling.

The one thing that bothered us the most was that we couldn't find a mathematical derivation for the (P/E)/Growth Ratio test. This was before Google, of course. My search of PEG Ratio on Google got 408,000 results in 0.29 seconds. Wikipedia says the PEG Ratio, "is only a tip of thumb and has no accepted underlying mathematical basis." This statement is not true. Actually, G/PE to PEG is preferred because all of the other key indicators in VectorVest are favorable when they are above 1.00.

As of at this time, It is never seen an independent derivation of the PEG or G/PE ratio. Years ago, we used to show this derivation in our Two-Day seminars and the most interesting thing about it is that it shows that the appropriate test ratio for valuation is 1.00 when, and only when, the AAA Corporate Bond Rate equals 10%. Test ratios below 1.00 are suitable when the bond rate is under 10%. This phenomenon is explained in our Stock Analysis Reports.

Have, for example, the case of F5 Networks, FFIV. It closed Wednesday at $96.36 per share. VectorVest had it valued at $68.71 per share with an RV of 1.43, GRT of 28 %/Yr., P/E of 34.29 and G/PE of 0.82. Is it undervalued or overvalued? If you compared the Price of $96.36 to Value of $68.71, you'd say that it's definitely overvalued. If you're a P/E type of person, you'd have to admit that a P/E of 34.29 is pretty high, so the stock is probably overvalued. If you're a PEG lover, you'd say a PEG of 34.29/28 = 1.22 is greater than one, so the stock is overvalued. You might think a G/PE person, like me, would say the stock is overvalued because 28/34.29 = 0.82 is below 1.00. However, I know enough to consult the VectorVest Stock Analysis Report. Oh my goodness, it says FFIV may be considered to be undervalued because 0.82 is well above the operative G/PE test ratio of 0.13%.

Everything, except the Stock Analysis Report, says that this stock is overvalued. What's going on? Well, last week we said that stock value goes up when interest rates go down. Interest rates currently are at historic lows and the Stock Analysis Report is taking that into account. It's telling the truth. Stocks are cheap. Take a look at RV. At 1.43, it's saying that this stock is likely to outperform a comparable investment in AAA Corporate Bonds by 43% over the next three years.

Think about it. What kind of return will you get on a bond paying 3.6%? In three years you'll make a total return of 11.93%. Don't you think a stock growing at 28 %/Yr. and an RS of 1.44 can appreciate more than 11.93% in three years? Sure, I know FFIV is currently overvalued, but with its high growth rate and fine financial performance, RV says that it's a better investment than buying 3.6% bonds. Anybody who uses P/E or PEG ratios to value stocks without taking interest rates into account is Playing A Fool's Game.

BOTTOM FISHING WITH THE BEST

If you're looking to make money virtually every time the market rallies from a dip, you've got to watch this week's "Strategy of the Week" presentation. Visit the VectorVest University and Mr. James Penna will show you how to do it by "Bottom Fishing with the Best."

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There are many individuals who keep on looking for exceptional System or Software program for their stock investments.

A good system/tool could certainly do wonder and benefit you a lot in your stock investments?

I noticed an appropriate and extremely good system to help me in my stock investment. This amazing tool is called VectorVest.

VectorVest is a comprehensive stock analysis and portfolio management system designed to make great profits. It is an extremely good product for deciding upon stock options in order to buy and to sort out. I came across various insightful things, facts and background of Vector Vest from their website.

VectorVest is created by Dr. DiLiddo, founder and Chairman of VectorVest Inc. Based on his research; Dr. DiLiddo has discovered that three things determine the movement of a stock's price: value, safety and timing.

People can have a look at out their website for further info. In addition, they have built their website with the following ambitions:

To present and advertise VectorVest
To deliver information about VectorVest:
Info in this website
E-newsletter
Presentations
And to make it possible for the people purchase this amazing product from this website

Now VectorVest is also promoting and marketing their product in Europe. So, this is good news for all the European investors.

You could also secure the trial edition of vector vest. And for any questions about VectorVest you could contact their helpdesk. Trust me they people really make things easier and clear for us.

Go for a VectorVest trial. To request a trial you need to fill in the contact form and rest of the details you can find on their website.

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Money goes where money grows. Stock prices go up when corporate earnings go up, and go down when interest rates go up. We have had stellar earnings reporting season in April and another in July. The S&P 500 average EPS is now 55% higher than it was this time last year and interest rates have been hitting historic lows. So why is the SPX down 2.24% so far this year? Shouldn't stock prices have gone up?

The short answer is yes, but things have happened which have affected investors' psychology. Right now, investors are fearful. They don't know what's going to happen and fear is dominating their investment decisions. People know their money isn't going to grow much at 1-3% interest rates, but they're afraid of losing what they have.

The WSJ article, "The Great American Bond Bubble," stated that investors buying bonds with 1% interest yields are likely to experience the same sorry fate as those who bought "Dot Com" stocks with P/E's of 100 or more 10 years ago. It also suggests that investors bet on stocks, particularly high dividend paying stocks, instead of bonds.

This presents the classic investment decision: does one invest in stocks or bonds? How does one decide? It's a matter of one's state of mind. If one is greedy and looking for capital appreciation, he/she buys stocks. If one is fearful and looking for capital preservation, they buy bonds. Answer to this question comes by comparing the Earnings Yield, EY, of stocks to the Interest Yield, IY, of bonds, i.e., EY vs. IY. As of Wednesday's close, the average EY of the stocks in the S&P 500 was 7.41%. The IY of AAA Corporate Bonds was 3.58% and that of 10-Year T-notes 2.58%. So the EY of stocks was 107% and 187% higher than those of AAA Corporate Bonds and 10-Year T-Notes, respectively. With stocks so undervalued, why would anyone want to buy bonds?

The level of fear is very high. By measuring this level by dividing EY by IY and called A Fear Index. This show a 50-year chart of this index and explains about "Stock Valuation and Stock Market Cycles" at Money Shows and other events. As for the reasons for this state of mind, it is recommended to follow below mentioned two articles: "The Decline of the P/E Ratio," WSJ, pg. C1, August 20, 2010 and "Shell shocked Investors Quit the Market," USA TODAY, pg. B1, September 3, 2010.

Note that all of these articles were written very recently. Is now the time to recall Mr. Warren Buffett's famous words, "The time to be fearful is when everyone else is greedy, and the time to be greedy is when everyone else is fearful?" If Mr. Buffett is right, it's Time to Be Greedy.

THE FASTEST HORSES
Wouldn't it be nice to simply read the Daily Views and know exactly when to bet on the Derby Winner with the fastest horses? Of course, we've been working on this goal since the Derby was released more than a year ago. So visit the VectorVest University to see how Mr. Jerry D'Ambrosio does it in this week's "Strategy of the Week" presentation, "The Fastest Horses."

You can learn more about stock charting software and stock chart analysis, by visiting - http://www.vectorvest.com

With changing financial investment scenario and more systematic financial investment is utilized now. Now investment groups are more and more applying methods such as decision analysis, portfolio management and other options analysis to get better decision making and capital allocation progression.

The objective of almost all investment analysis is to make investment decisions or advise people in making their own investment decisions. Thus, there is a strong relation among the technique of equity analysis and portfolio management.

An imperative aspect of improving the performance of risk management involves in investment, this is to guarantee the integration of these analytical techniques. You need a proper portfolio analysis to know what level of risk-taking is appropriate.

There are important characteristics of the decision analysis and portfolio management that associates directly to choose the best investment options.  Decision analysis; offer you a system for evaluating and apply a corporate risk-taking policy. To know the firm’s approach on financial risk is important in terms of choosing the suitable portfolio of activities. These connections between decision analysis and portfolio management can improve the overall decision process, and ultimately, firm performance.

There are many stock analysis and portfolio management system designed to fabricate large profits. It is an excellent system for selecting stocks to buy and to short. Practically investment conception can involve new ideas beyond your training in the same field. Managing a set of portfolios involves extensive thought to detail, computerization and requires administrative competence. 

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Investors, mainly Seniors, want 2 things: Security and Money. In the mission to reach these objectives, they took $233 billion out of equity funds and put $559 billion directly into bond funds from January 2008 to June 2010. Was this a great plan?

Two famous professors from the Wharton School of Business, Drs. Jeremy Siegel and Jeremy Schwartz, don't think so. In an article, "The Great American Bond Bubble," published in Wednesday's Wall Street Journal, page A17, they claim that bond prices are way too high and are fixing to come tumbling down just as internet stocks did in 2000. Mr. David Rosenberg, former Chief Investment Strategist at Merrill Lynch, thinks the "Two Jeremies" are dead wrong, saying that bond prices won't come down anytime soon. (See http://www.businessinsider.com/david-rosenberg-on-the-bond-bubble-2010-8.) Mr. Rosenberg believes deflation is likely to come upon us and low interest yields on totally safe T-Bonds will be looking awfully good compared to negative inflation rates. Position here is that Mr. Rosenberg may be right, but no one interested in investing money on a 1 or 2% return.

The "Two Jeremies" suggest that investors consider buying stocks of solid companies such as AT&T, which have a relatively high yield, currently 6.23% on 08/19/10. Mr. Rosenberg doesn't totally disagree with this, but wonders why an investor can't invest in safe government bonds and "safe" stocks. This sounds OK, but who can be satisfied with a return of less than 10% on their money?

After a lot of research on retirement strategies there's one thing for sure. You're never going to get the 10% return you want by buying low yield bonds and so called "high yield" stocks. That's why two of the four strategies described involved the technique of selling Covered Calls on dividend paying stocks. This technique was featured as our "Strategy of the Week" presentation on September 25, 2009 and it has been featured several times since then.

One of the essay called, "The PayDay Portfolio” reiterated conviction that selling Covered Calls on stocks paying high dividends is a relatively safe, practical way of generating 20-30% return on your money. You need to know how to trade Options, however, to properly implement this technique. Therefore, we have illustrated the basic technique several times as the "Strategy of the Week" presentation. (See the SOTW presentations of 09/25/09, 03/26/10, 05/14/10, 07/23/10 and 07/30/10.) Also made it a bonus presentation in Options Course and have made it available to options savvy subscribers via the purchase of a special PayDay Portfolio Report.

As of yesterday's close, a backtest of a hypothetical $100,000 PayDay Portfolio started on January 8, 2010 shows a Total Value of $130,035.95. I have been trading Covered Calls with real money for several months now in accordance with the rules described in the PayDay Portfolio Report and it's the best way I know of achieving both Safety and Income.

TAMING THE TIGER WITH COVERED CALLS

Ever since the so called "Flash Crash" of May 6, 2010, the stock market has shown manic-depressive behavior, going back and forth from euphoria to depression on the slightest bit of news. It's been hard to make money by going either long or short, but the strategy of selling Covered Calls does both at the same time. So visit the VectorVest University to see Mr. Glenn Tompkins, Manager of Educational Services, illustrate how it is done in this week's rewarding "Strategy of the Week" presentation, "Taming the Tiger with Covered Calls."

THE $1000.00 AWARD CHALLENGE

We believe we have a winner, but we need more time to check the results. If it pans out the way we think it will, we will give you the details next week.

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As spotted in past week's essay, we all have got a trading stocks system submission to our $1,000.00 Award Challenge that appeared like a winner. The submission we all liked the very best came out from Mr. William Cook of Mission Viejo, CA.

It was based upon the observation which from August 18, 2009 to August 13, 2010 the VectorVest Tote Board exhibited that the "Bottom Fishing in Rising Industries" Strategy had a cumulative increase of 104.99% together with an Efficiency Factor, EF, of 24.81%. VST Mighty Mites, yet another fantastic performer, gave a cumulative gain of 85.50% with an EF of 24.48%. These phenomenal performances have been obtained during a time period in which the Price of the VectorVest Composite gained 13.04%.

The problem here is that it could have been problematic to duplicate the performances of these Strategies in actual life. One would have had to purchase the top 10 stocks returned from the Method at the market's closing each and every day, sell these at the next day's closing; then repeat the procedure every single trading day. We're communicating about 4,980 trades over the test time period of 249 trading days. This sounds like a whole bunch to me. So the challenge is "to send in a practical, viable stock trading procedure for capturing the gain potential of these great Strategies." We are convinced Mr. Cook has sent in the very best strategy for accomplishing what precisely we required so far.

Mr. Cook is a long-term user of VectorVest who first subscribed in 1998. He left VectorVest for a while; and then re-subscribed in 2005. We connected with at a VectorVest event years ago, but I cannot remember the conference. Nonetheless, his approach to meeting the challenge was novel and easy to fully understand. To determine when to invest in and sell stocks and shares, he applied the VectorVest 7 edition of the Market Timing Graph which shows pricing data as Candlesticks. He would certainly go long when he observed 2 consecutive green candles plus an up follow-through day and go into cash when he saw two consecutive red candles plus a down follow-through day. He also used a five-stock portfolio with no Stops and he claimed an 82% gain with 110 trades.

We also got yet another submission which challenges Mr. Cook's candlestick system, however , it offers several uncommon techniques that require the Simulator to implement. We plan to modify and analyze both these systems therefore that end-of-day traders, i.e., the infamous Midnight Cowboys, could utilize them. In the meantime, we like Mr. Cook's suggestions ample to share them with you, thus we're sending him a check for $1,500.00. Thank you, Mr. Cook, for Cook's Candles.

COOK'S CANDLES

To get the whole report on how this new forex trading technique works, check out the VectorVest University to see Mr. Todd Shaffer, Manager of Research, explain and illustrate this week's interesting "Strategy of the Week" presentation, "Cook's Candles."

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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."

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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