Furious sector rotation

Sometime reading the market is tricky. One of the prominent feature of the current market in last few weeks is the furious sector rotation. Money has flowed out of sectors like commodities and energy in to retail, restaurants, technology and software. Every day a new sector is attracting attention. In recent weeks the transport and biotechnology are finding a bid. Lot of money flow is concentrated in the large cap. Many stocks after breaking out have just hung on to gains but not gone in to rally modes.

Now this kind of scenario creates a bit of dilemma. Large caps lead in the later part of the bull move. But at the same time speculative sectors like biotechnology and technology are also attracting buying. So the message of the market is mixed. It possibly points to a protracted sideways move.

A range bound market presents special challenge as many breakouts do not go very far off either on upside or downside. Such challenging markets are the playground for certain kind of strategies. While we would like to have a market making a strong move in either direction, one has to adopt to the given condition.

I continue to find opportunities on both long and short side, but many of them are giving lesser profit than what I like to get. Over the years I have learned that these kind of market environment are cyclical and bad times are followed by good times. Such market environment is when you need good risk management strategy. I am using time stops on lot of my positions in this environment. So if a stock is not making an expected move in a desired time frame, I am out of it. I am also aggressively moving stops to protect profits.

Note: Some of you have requested that Friday is not a good day for the chat on "developing a good market feel". So I am planning to re-schedule the online chat sometime next week. If you are interested please send an email and I will let you know about the time and other details.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

404

Recent Articles