Immediately after our market timing model shifted out of “Buy” mode (just one day before the Nov. 7 sell-off), we changed our focus from buying leading individual stocks to trading ETFs with a low correlation to the direction of the broad market (commodities, currencies, fixed-income, etc). While our most profitable momentum trades in healthy bull […]

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We’ve begun seeing a bit of sector rotation lately, with leading stocks and sectors cooling off and formerly lagging industries seeing a bit of buying interest. Institutional sector rotation is common in bull markets, and the rotation of funds from one industry to another enables broad-based uptrends to remain intact, even when certain sectors are […]

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Over the past several weeks, we’ve been discussing the increasing relative strength in small-cap stocks, compared to the rest of the broad market, and that bullish divergence continues to widen. Despite the blue-chip Dow Jones Industrial Average ($DJI) falling 0.8% and closing well below key support of its 50-day moving average yesterday (September 30), the […]

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