In Search of the Perfect Investment

This market is getting harder and harder.

VectorVest gave a strong SELL signal last night. They’re usually spot on with their general market calls. Explains my friend:

VV major buy/sell signals are always for the entire market because their VV composite is calculated from over 8000 stocks, not just the DOW or the S&P500. And their signals are always late because they require week over week confirmation. Of course anyone could have put stops on their stocks when VV’s MTI indicator hit 1.6 on Sept 17th and they would have been all out by now around the top. Just remember they have never missed a major buy/sell call.

In VectorVest’s own words:

ANALYSIS: The Price of our VectorVest Composite (VVC) closed at $28.75 per share today, down $0.23 per share from yesterday and down $0.57 per share from last Tuesday’s price of $29.32 per share. Since the Price of the VVC fell from last week and was confirmed by today’s action, it turned red as compared to last Tuesday’s yellow. The primary trend of the market, which is determined by the week-to-week direction of the Price of the VVC, is Dn.

The RT of the VVC closed at 0.93, down 0.03 points from yesterday and down 0.06 points from last Tuesday’s reading of 0.99. Since this indicator fell from last week and was confirmed by today’s action, it turned red as compared to last Tuesday’s yellow.

The Buy/Sell Ratio, (BSR), of our Recommendation Profile of 8,121 stocks closed at 0.54, down 0.31 points from yesterday and down 0.69 points from last Tuesday’s reading of 1.23. Since this indicator fell from last week, was confirmed by today’s action and is below 1.00, it turned red as compared to last Tuesday’s green.

Our Market Timing Indicator, (MTI), which combines the trends of the Price of the VVC, the RT and the BSR into a single indicator, closed at 0.94, down 0.09 points from yesterday and down 0.16 points from last Tuesday. Since it is below 1.00, the underlying trend of the market is Dn.

SUMMARY: With three red lights, the Color Guard is Bearish. With the Price of the VVC moving lower on a week-to-week basis and the MTI below 1.00, we have a DnDn situation.

STRATEGY: Earnings reports continued to dissapoint investors today causing stocks prices to sink further into bear market territory. With three red lights and a DnDn situation:

Prudent Investors should not buy stocks at this time.

 The hunt for an affordable hearing aid. My conclusion: Hearing aids are for people with acute hearing loss. People like me with borderline hearing loss will find them a pain. Meantime, wireless headphones (like these Sennheiser ones) are great for watching TV. A New York Times reporter went on a search for an affordable hearing aid. Here’s his interesting story. Click here.

Everything I’ve learned about shoulders.

1. They weren’t designed to play tennis.

2. You can’t repair torn tendons without surgery, which is only the last resort, since the recovery time is so long, arduous and painful.

3. Cortisone shorts are to cut down on pain, not repair anything. But they do cut down on pain. My doc chose not to give me one yesterday since he said I wasn’t in enough pain. Not serving has cut down enormously on the pain.

4. MRI will probably tell you what you already knew. You have a tear. Then you get the bill.

5. You can strengthen the muscles around the tear through physical therapy. But you’ll never be 100%. Face it. I’ll never be Federer.

6. The Internet is bereft of useful information on shoulders. This one is among the best. Click here.

Reader Ben Woodhead writes:

I am 80 and have been playing tennis since I was a teenager. I played in college and now play 4 or 5 times a week, both singles and doubles.

 I have concluded that it is absolutely necessary to work with weights in a gym several times a week to avoid injury, especially shoulder injuries. Reverse flies (flys?) are a must. Leg lifts and presses will avoid hip injuries; abdominal are also very important as are calf exercises.

 For me, the immediate prognosis is: Play tennis gently. Don’t serve or hit overheads. Go to physical therapy and strengthen surrounding shoulder muscles.

I asked my sports doctor did he play tennis? No. Had he ever, Yes. What happened? He gave it up because of his shoulder. He now plays golf. Yuch.

Favorite recent New Yorker cartoons.

Harry Newton who is going increasingly to cash and some select shorts. I haven’t liked this market for some weeks.