Bull Over?

Not all market sectors are performing equally.

Technology (QQQ)  and Biotech  (IBB) are smoking hot, Banking is gaining momentum (XLF, KRE), Energy (XLE, OIH, USO) and Materials (XME, SLX) have been eviscerated.

Perhaps we are just setting up for some sector rotation, not widespread market selling?

If the SPY breaks below and stays below the 50 week moving average, a deeper correction can be expected, until then, buy what is working on weakness. That is my current game plan.

Manage risk with position size and/or stops in case the reality of the market goes against your best thought out plans.


It is Better to Make Money, Than be Right

It is better to make money, than be right, at least in the market.

Read this interview with Jim Rogers.  Jim is an enviably smart and successful investor. While he admits to being a bad market timer, his macro calls have made him a legend.  His approach obviously works for him.

Jim may be proven correct, as far as his analysis of the markets go, but he has been sidelined on US markets for years, missing one of the greatest bull markets in history.

Trend followers who have had the discipline to stay with the trend and ignore the noise and opinions, have done well in this market.

It is important to determine what kind of market investor you can be.  Follow the shorter term trends, or invest with a macro long term thesis.  It is hard to do both very well.

For me, it is better to make money than be right.

The overall US market is still in a bull trend. I will buy on weakness and be ready to exit if that trend is definitively broken.