Time to Buy Stocks

I was training a class of new VectorVest users about 2 weeks ago.  Someone from the audience asked me if it was too late to short the market.  Surprised, I then took a poll of the audience that day if they felt bullish or bearish about the market.  Most of the raised hands were bearish.  With that I declared to them that it was time to buy stocks!

It was clear 2 weeks ago that the sentiment amongst retail crowd was bearish.  They do not want to buy stocks and are thinking of shorting.  In understanding that there are only 20% winners in trading, I knew that I have to be bullish.  Never take action, until there is a clear entry signal from the charts to signify that the demand fundamentals has changed.

You need 2 things to enter into a market:

1. Identify the Driver (Fundamentals or Sentiment)
2. Timing (Technical Analysis)

See below for the STI chart, and the S&P chart.  Green arrow for Buy signals, Red arrow for Sell signals.

It is now time to buy US and SG stocks.