We like having a great edge. But there are not great edges all the time. Right now, it is a lot of a guessing game. Yesterday, big sell off after two big days up after a bunch of ugly reversal days…into this morning’s “another gap to the upside!”
So be patient. That is best advice.
Continue to avoid (except for bounces) everything interest-rate sensitive…real estate, utilities, housing. If rates come down again, they will rally from voersold.
Consumer staples act horrid. (Food, drug, beverage, tobacco, household products.)
Europe continues to under-perform.
Chinese ADRs now need to be watched as they are under some pressure.
The good news is the “glamour growth,” mega-cap tech/internet continue to act well but is getting narrower. BKNG (used to be PCLN) gapping nicely to the upside to near old highs…another glamour name that has been dead.
FINANCIALS are also in fine shape. SEMIS were amazingly in new high ground yesterday. NASDAQ/NDX hit near old highs and pulled back. That’s a no biggie. Just have to be a lot more sector and stock specific from here on in.