Bottom Fishing at the right Market Timing (VectorVest)

23 thg 6, 2017

With the help of VectorVest, we knew that the Aussie stock market just reverse from the bottom on 22-Jun. Therefore we apply a Bottom Fishing strategy called "VST Mighty Mites"

Parameters modified as follow:
• Sector <> Energy, Materials, ETFs, Telecom Services, Utilities

Results of Top 5 stock descending by VST*GPE/RT are
HPI.AX, RFF.AX, GDI.AX, CDA.AX, AVN.AX

Since we are bottom fishing low-priced stocks with good fundamentals that have been beaten down. We are looking for the ideal stock(s) with RT < 1.0.
By looking at the RT values from these 5 stocks,
HPI.AX RS = 0.82 and RT = 1.09
RFF.AX RS = 0.89 and RT = 1.13
GDI.AX RS = 0.99 and RT = 1.04
CDA.AX RS = 1.36 and RT = 0.91
AVN.AX RS = 0.91 and RT = 1.05

Just a few seconds, we will pick CDA.AX. Also, CDA.AX has an RS of 1.36, which is very good on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors.

When to buy ?
Price action showed a low test bar lying on an up-trend support line in 22-Jun, therefore buy at market open on 23-Jun

When to sell ?
Rejection area near Fibonacci Channel 100% level

27 thg 6, 2017

Ghi chú