It Pays To Be In The Right Groups
At the beginning of the week I said I would be very happy if the dow rallies while the reits and airlines stocks don't rally as much. The reason why I said that is because I was long DIA and short reits and airlines.
Above are the 3 groups I was trading this week. Lets just focus on this week, the last 5 trading days. Notice how the dow is above Monday's high while the reits and airlines are actually below Monday's high. This is exactly what I was hoping to see. The reits and airlines trended down this week while the dow trending up. The point I'm trying to make is that it pays to be in the right groups. It's very important to know what groups are showing strength and what groups are showing weakness. You want to short the weak groups on rallies and buy the strong groups on dips. Had I been short strong groups this week, I would have had my head taken off!!
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4 comments:
Kev
What is your position on the "other" metals like steel.
I'm short going into next week. A chart I use indicates a divergence from AD line. SP continues to rise with what looks to me as clear distribution.
PKX also happens to be my favorite steel company well run stable Korean ship. But gains of
I was very bullish on steel awhile back but lately I haven't done anything with them..I'm mainly focused now on gold, silver and copper.
What are your thoughts on Energy sector, short and long term?
probably higher...I think seasonally crude oil goes up this time of year...I might post about that next week on this blog.
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