TODAY'S MARKET & SECTOR SENTIMENT |
The Sector Trend Investing Cycle | |||||||||
| 0 - 5 | 6 - 10 | 11 - 15 | 16 - 20 | 21 - 25 | 26 - 30 | 31 - 35 | 36 - 40 | ||
| B1 50% 75% Invested |
+5 X BUY | -35 O | START OF NEW CYCLE | Market selling is heavy. Time to look at sectors below 30% that are about to turn around to above 30% on Point & Figure charting. Look for fundamentally strong companies in these sectors. |
B1 50% 75% Invested | ||||
|
B2 100% Invested |
+10 X FINISH BUYING | -30 O | You should finish up your stock buying. Individual Sectors are showing improvement. | Major Indices Flat near the bottom of the market. |
B2 100% Invested | ||||
|
N3 95% Invested 5% Cash | Hold Investments - Portfolio should be showing marked improvement. Evaluate underperforming stocks and consider selling the Dogs. |
+20 X HOLD |
-20
O SELL DOGS | Major Indices Moving Up | N3 95% Invested 5% Cash | ||||
|
N4 80% Invested 20% Cash | Start to evaluate stocks in your portfolio. Your best stocks should be hitting new highs | Market is flying. Many stocks hitting new highs. Daily market hitting highs |
+30 X HOLD |
-10
O Sell Dogs |
N4 80% Invested 20% Cash | ||||
|
N5 75% Invested 25% Cash | You should see your best stocks hitting all time highs and start to sell some of your positions. Take some profits on the highs. Continue to evaluate the your exit points | Major indices hitting highs. Stocks with strong fundaments hitting all time highs. Sector strength is very strong. Stocks with strong fundaments are up significantly. |
+35 X Start TO Sell | -5 O | N5 75% Invested 25% Cash | ||||
|
S6
| You should have exited all your stock positions by now. Take a rest and let the market correct. Enjoy your profits and be patient. Wait for the next market cycle to re-enter your best stocks. Congratulations are due! |
CYCLE ENDING Major indices should be flat or at their highs. Number of individual stocks hitting all time highs decreasing. Erosion in individual sectors is increasing. |
+30 X SELL |
-10
O SELL |
S6 25% Invested 75% Cash | ||||
|
S7
| Now is the time to rest. Monitor the market looking for both groups and individual stocks to invest in the next market cycle. |
+20 X All Cash |
-20
O Out of Stocks | Major Indices have run out of steam - Flat at the top. Individual Sectors are starting to show the truth about the market. |
S7 100% Cash | ||||
| S8 100% Cash |
+10 X Stay Out |
-30
O Stay Out | Sector erosion continuing. Most stocks pulling back from their high. Some serious pull backs from all time highs are showing up. Time to seriously start considering what to buy and at what price level to enter stocks. | Major Indices starting to pull back. Sector weakness is growing. Best opportunities are in the sectors below 30% on Point & Figure charts when they move above 30%. | S8 100% Cash | ||||
| B1 |
+5 X BUY | -35 O | START OF NEW CYCLE | GO TO TOP & REPEAT | B1 | ||||
0 -5 |
6 - 10 |
11 - 15 |
16 - 20 |
21 - 25 |
26 - 30 |
31 - 35 |
36 - 40 |
||
|
B1 = Agressive Buy B2 = Finish Buying |
N3 = Neutral N4 = Neutral N5 = Neutral | S6 = Ok to Sell |
S7 = Sell All S8 = Sell All | ||||||
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