Trading Update

Follow up on the stocks I mentioned during the Christmas Gathering for the Santa Clause Rally (which ends next week) …

Construction & Consumer Durables (Click to enlarge)

All would have made you more money than all the other stocks that made rallies in the market. These guys were amongst the biggest gainers in the last two trading weeks.

I also mentioned watching the Defense sector during the Christmas Gathering. The reasons, of course, are only privy to my students but as you can see, it was not without good cause …

Defense & Aerospace (Click to enlarge)

For those of you thinking of jumping in after reading this, be advised … YOU ARE TOO LATE! Never make the mistake of getting in at the high. For the Defense stocks, wait for a pull back before you consider the next entry. This is only the first wave so there is a lot of time to consider an entry for the second wave after the pull back.

The Construction stocks look like starting a second wave and it would be prudent to time an entry and get out quick before earning season’s volatility kills your position.

As far as the Consumer stocks go, it’s much too late and you have missed out on one of the best cyclical runs a Bear market has to offer.

So what can you watch out for in the next few weeks?

Check out HMOs, (UNH, WLP, HUM, CI, AET, HNT, CVH) … Obama is making a major drive for MedicAid and MediCare to help boost the economy. Wait for the pull back and catch the second wave after it happens. This is going to be the next big ride!

That’s all from me for now … more than enough to get your new year started to what I believe will be a profitable year. If you wanna know how I do this, …

Sign up for my Tutorial!

Cheers!

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