Psychological resilience is defined as an individual’s ability to properly adapt to stress and adversity. Stress and adversity can come in the shape of family or relationship problems, health problems, or workplace and financial worries, among others.
The Resilience I would like to mention here today is the resilience shown by those stocks that have high VST on the VectorVest system. As a default all the shares on the LSE and Aim and ranked by descending Value, Safety and Timing or Trend (VST). These shares have not moved down in the markets sell off over the past few months and allow their investors to sleep well each evening.
Click here to try VectorVest for 5 weeks
As I have written here many times I have developed a search on the Unisearch part of VectorVest that finds shares that have a high earnings potential (Relative Value) that are presently undervalued and growing their earnings safely. The top 10 shares on this search (known as the BIG HITTERS) have gained 21% during 2015 while the Ft100 is down around 10%. The search is the basis of all of my investing and trading. For example, if I wish to swing trade in a share over a few days to a week, I always wish to ally the technical setup with the fundamental position of the share. If both are positive then the chances of success are much higher.
Recently on the “Round the Clock” trader I detailed a swing trading technical trading plan (Watch the replay on 6th October at 1900 GMT) that can be used with high VST stocks and I will be repeating this at the London Investors Show on October 23. The show is being held at the Novotel hotel in Hammersmith.
Over the last week the VectorVest Composite of the UK came back and tested the 62% retracement of the last range once more. The Dow cash in the US did the same while the broader US market as measured by the SP500 retraced and bounced from a 78.6 retracement of the last range. On Friday the US reported a poor jobs number and this will probably result in rates being kept low well into 2016.
During last week the short term or Primary Wave trend turned up for two days but at the end of the week both the Primary Wave and the Underlying trend are down. The advice of “VectorVest does not advocate buying stocks at this time” is sound.
I am 50% invested from the last week in July and I am watching the shares carefully. Avon has done well but the 4 others are around what I paid for them. Including commissions and with the Avon profit I am flat. This is the resilience of high VST shares that I started this entry with, which has greatly impressed me.
The chart of BPI.L looks very strong to me. On a weekly view over 5 years the share has charted a two year rounding bottom (or cup pattern) after a strong advance. The old high was broken a few days at around 7 pounds. I was hoping for a pullback or a kiss of this level during the week. This can still happen easily but the share had a very strong day on Thursday past.
Click here to try VectorVest for 5 weeks
Howden Joinery (HWDN.L) is a share that was good to me a few years back. After a strong run this share has pulled back slightly to previous resistance at around the 4.70 level. Over the last few weeks the share has charted a fairly text book inverted head and shoulders pattern which would seem to ready to break on the upside. The share is trading at 4.88 while the valuation on VectorVest is 7 pounds. The earnings potential (RV) and earnings safety (RS) are excellent.
When the general market turns I will be considering both of the above shares but for the moment will sit and wait and follow my rules.
Click here to try VectorVest for 5 weeks
David Paul
October 3rd 2015
Be the first to comment on "Resilience"