Written by:  Mike Simonato, Ontario Presenter: “My Three Friends”, Dec. 3, 2016, VectorVest International Online User Group (Click here to View: My Three Friends)

First the Street.  Business is still strong and still 50-60% paying cash. Still the big shock this year. I’ve been paying between 89 and 91 cents a litre for gas this year so fuel costs are a fraction of what I’m used to so profit margins are up.

Now for the Markets:

USA  MTI 1.62  BSR 220 (Falling)  MTI and RT have gone sideways the last 8 days

DOW JONES:                  False Breakout above 27,044.42 (3 Touches last 8 days) Watch 200 and 20 SMA for support  RT Rolling over

NASDAQ:                         2 touches @ 10,839.93 Fell below the 20 but rose to close just below the 20 SMA  Possible channel between 10,161.58 and 10,839.93

S&P 500:                          Broke below support @ 3234.01 RT rolling over.  See if it can hold the 20 SMA. Could be a bull flag

MKT TIMING:                MTI, RT and BSR fairly flat lately. Possible false breakout above 48.61 or could be a Bull Flag.  Watch to hold 20 SMA

READ Strategy

A Warning (Red Flag for me)  In July AMZN up 4.52%   SHOP (-8.54%)   To me this is another form of Bearish Divergence

My PICKS for the YEAR.  WMT, HD, AMZN and COST continue to do well in a challenging mkt.  SHOP has dragged the basket down.

CANADA  MTI 1.48 (Same as 10 days ago) BSR 1.61  RT slightly above 10 days ago

PTSE:                             Broke out but then pulled back to the 200 SMA See if it will act as support.  RT falling steadily.  Light Volume

VENTURE:                   Channel last 11 days.  2 touches at top.  Tried to break down but came right back up into the channel  Still strong volume

MKT TIMING:             Price rolling over. Closed just below the 8 EMA. MTI, BSR and RT all falling RT in a wedge and MTI in a channel

READ VIEWS (One to Print out – Stan does it again), Strategy, and Climate. (Both USA and CDN Earnings Indicators continue to fall further into Bear Mkt Territory)

MODEL PORTFOLIOS 1,2 & 5 continue to look good

GOLD/ SILVER  Month of JULY – PAAS still #1 but ELD and TGZ catching up.  This past week Gold had a good week and silver fell.  Still a very good basket to own or at least strongly consider ETF’s. Dr David Paul, VectorVest’s UK Managing Director, and many others feel that Gold and Silver are setting up for a strong Bull Run. (Dr Paul expecting a pullback before the next big leg up)

As always nothing more than my 2 cents and I hope it’s of value and interest.