THE BIG END OF TOWN BEGINS TO FIRE
Watch out! The big end of town is ready to rumble…they have been on the charge since the start of the year. Has someone had a word to the fund managers that now is the time to start buying up the big blue-chip stocks again?
In VectorVest, we have a tool called UniSearch that finds us stocks based on certain parameters. One such search that we have is entitled: Best of the Biggies. This search finds us the big blue chip stocks that meet strict fundamental and technical criteria.
The top performers from the Best of the Biggies Search for January (3 January 2023 – 20 January 2023) include PLS.AX (up 25%), MIN.AX (up 19%), NHC.AX (up 16%) and S32.AX (up 15%). Phenomenal returns in just a few days. Why the surge?
There could be a multitude of reasons including:
- Pressure from fund managers to get fund positions sorted for 2023.
- A sense of bullishness as the inflation narrative improves.
- The holiday season is over, and investors are back at their computers.
- A relief rally that will fizzle out soon.
It can make for a stressful life if one is continually being swayed by a sea of economic reports each day where you are left guessing. One minute you are listening to a bullish narrative, only to have the very same news source produce a negative outlook. What is an investor to do?
The answer is simple: Use VectorVest. Apply the VectorVest Market Timing signals to work out when the market is turning. On the Market Timing Graph, the most aggressive Market Timing signal provided by VectorVest is our Primary Wave. On the Market Timing Graph, you will note that the Primary Wave turned to an entry signal on 5 January 2023. This was followed by the GLB/RT Kicker on 9 January and then the Confirmed Up (C/Up) and the DEW Timing signal on 12 January 2023. The signals are lighting up!
With the market turning, we can then use UniSearch to identify opportunities in combination with the QuickTest tool. You can see what is working. In this case, had we identified the Best of the Biggies UniSearch was performing well.
The Best of the Biggies search run as of the start of 2023 through to 20 January 2023.
We have created a short video so you can see exactly how it was done. Please CLICK HERE to see the video.
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