Well, ChartCon 2016 is over. I am sitting in the coffee bar with Arthur Hill this morning and we are discussing some of the ChartCon wrap-up details. Arthur provided a great presentation on systematic trading. I presented the SCTR with some little twists for people who might have seen the SCTR presentation before. Reading through the follow-up questions and comments, there are some great ideas on topics for blogs and webinars. I will endeavour to answer some of the feedback I received.
During my SCTR presentation, I commented about Valeant Pharmaceuticals (VRX.TO, VRX). One of the questions related to how the SCTR would help you get out of the stock in time to miss the huge slide that happened because of Hillary Clinton's comments about Valeant. So perhaps, we should discuss that in further detail.
Here is the chart of Valeant in Canada, however, the same price action exists in the US. As StockCharts increased the number of International stocks with an SCTR in 2014, that is when the US ticker symbol (VRX) started having an SCTR. For today's comments, I would like to use the longer time frame on the Canadian ticker.
Notice that for the most of the period shown, Valeant had a very strong SCTR, so this is the type of stock investors like to fall in love with. When it's working stay with it. That sounds like a good rule. As this is a weekly chart and the grid underneath is 3 months per line, this is a big winner for long periods of time. The first chart is simply the major primary uptrend with four smaller multi-quarter uptrends.