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Prudent investors should wait for MTI to bottom and make solid turn up. Patience will reward us all.

By Don Fanstone, Member, Kitchener/Waterloo User GroupJuly 2 YTD

Option Blog July 5, 2015:

VectorVest advises buying undervalued High VST stocks in a rising market.

VectorVest will help you make money if you follow VectorVest timing advice.

USA: Col. Guard Bearish, MTI .78,  Dn/Dn, C/Dn,    VV: Do Not Purchase.

CAN: Col. Guard Bearish: MTI .72    Dn/Dn, C/Dn VV: Do Not Purchase

The US market recorded a Confirmed Down on Thursday July 2nd. Stand Aside.

Sells for the Week of June 29th:

Buys for the Week of June 29th:

Stocks to Watch:

CTC.A Canadian Tire                       Potential Buy Nov. 125

CNR: Canadian National Railway    Potential BUY Dec. 64

ATD.B Alimentation Touché-Card    Potential BUY Nov. 44 Call

DOL. Dollarama                               Potential BUY Jan. 66 Call.

RY: Royal Bank                               Potential Buy Jan. 66 Call.

Be Prudent: Wait for the MTI to bottom and make a solid turn up. Patience will reward us all. There will be a turning point, be sure there is follow-thru before taking a position. Wait for the Green Light in the Price Column.

The BSR is at a low of .15. It has been as low as .03 as recently as 10/15/2014, after which the market gave us a short but explosive rebound. The MTI was at 0.49.

The Price of the VV Composite closed at $19.12 Friday. It hit a weekly high of $18.70 Feb. 28/2011. This may be a future support line.

July 6 MTI Final2

For those so inclined, consider a Bull Put Credit Spread.

Example: Sell a CNR Aug. 74 Put for $2.15, Buy a CNR Aug. 70 Put for $.93.

Money in the pocket $122.00 per contract versus a potential loss of $400.00 if CNR closes below $70.00 on August 21st, 2015.

July 6 CNR

DISCLAIMER: Options trading involves risk and is not suitable for everyone. The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. Options training is strongly recommended before placing any trades. VectorVest offers a basic options course online and occasional intermediate options workshops in Canada each year.

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