By: Scott Redler
At every turn, this rally has had doubters. Nobody believes in its validity, and after each leg higher a new round of pundits has come in to warn about a massive correction or impending double bottom. While the resiliency of this market has been somewhat surprising at times given some uncertainty in the global economy, we are not in the business of making predictions. And we are certaintly not in the business of fighting the tape. We let the action speak for itself, and right now it is telling us to continue putting money to work with a sector specific buying strategy.
When stocks make long runs higher, so many traders and investors are hesitant to put money to work thinking they have missed the meat of the move. For us, strength breeds strength, and we are simply looking for buyable dips that give us defined risk on the trade. Since just last week, we have identified a series of powerful patterns that have yielded huge profits for us and our community. Embrace the rotation we are seeing, and stay flexible and liquid so you can put money to work where the action is. Sector specific buying could have made you a lot of money if you just opened your eyes to what was going on around you.
It is true that the more extended we get, the more cautious we become. But when we are presented with chances to buy small dips, we are embracing those opportunities. We are not trying to pat ourselves on the back, but here are a few examples of how a sector specific strategy could have made you money over the last couple of weeks.
When the time comes to look short, we will be prepared for that too, but in the meantime its full steam ahead!
