Bottom Fishing at the right Market Timing (VectorVest)

2017年6月23日

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

2017年6月27日

註釋