One of the characteristics of a trending stock market is sector rotation. In a bull market not all sectors are necessarily trending higher and sectors are taking leadership in turns. This means that some are bound to outperform while the others are under performing. Sector rotation is a very important fuel of a bull market. So identifying sector rotation is crucial to be successful in the stock market. The phrase past performance is not an indication of future results is something that applies here very well!
We’ve seen increased volatility in the stock market this past week. I think that the reason could have been due to a rotation and not because a major top is forming just yet. Continue reading “From tech to financials and energy?”
There is so much pessimism in the market right now and it’s so hard to escape from it. It feels that if one is not bearish, then he must be missing something or he is just a blind bull. I know, there are problems in the world. But was there a time when everything was rosy?
Anyway, today I would like to write a post around a tweet of mine that brought quite a lot of attention. I wrote about the same topic on June the 3rd  and now I would like to add few thoughts to challenge you by asking what if we are in the first stage of a multi decade long bull market, similar to the ones that started in early 50s or 80s? Continue reading “Why are you so pessimistic?”
I didn’t write about the stock market for a while now and there is a good reason for that, there is nothing new – the market is still in a bull trend. So far there is little evidence to suggest this bull run is ending, but on the other hand I’m sure you’ve heard about the quote ‘risk happens fast’. So everyone is probably wondering what to do going forward.
In this post let me show you the pattern of the years that end with 7 as well as why this market is so similar to the market in 1995. Continue reading “A repeat of 1995 or years that end with 7 pattern?”