Investors Weekly Update

October 31, 2020

Our equity/bond model - This long term reliable investing model provides investors with simple decision making in the markets:

  • When the model favors stocks, investors should overweigh in equities for maximum growth.

  • When the model favors bonds, investors should overweigh in bonds for safety.

Our benchmark S&P500 is back on long term BUY signal as of end of October.

Oil sector remains on long term SELL signal as of end of October.

VIX – volatility index

VIX is up and markets are down.

The fear in the markets this week clearly shows in a long-term chart.

VIX spiked up to over 40 this week, and since the bull market which began in 2009, these VIX spikes have proven to be good entry points.

$SPX is consolidating after the huge run up from March.

So far we see a 3 wave pattern, but as we can learn from the gold sector, it’s likely that we will see a 5-wave pattern after the impulsive phase off the panic bottom in March.


Our benchmark S&P500 is on a long-term BUY signal.

However, the current investing model remains in favor of bonds, therefore, investors should continue to overweigh with long bonds or bond ETFs for safety over growth.


We do not offer predictions or forecasts for the markets. What you see here is our simple investing model which provides us with simple investing decision making. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets.


Jack Chan

Jack Chan is the editor of simply profits at, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

US silver mining began on a large scale with the discovery of the Comstock Lode in Nevada in 1858.

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