A couple of weeks ago I published a report analysing sector performance relative to the Stock Market Cycle. The SM Cycle was divided into four stages: Early, Mid, Late, Recession. I suggested that the market was now in the Mid-Late Phase.
If such is the case, then certain sectors should be avoided as investment vehicles at this stage of the cycle. Specifically - Sectors that perform in the "Early Stage". Those sectors are: Consumer Discretionary, Information Technology, Financials and Industrials.
Following are charts for those sectors to "Avoid" (just my opinion):
This information is probably irrelevant if you are a day trader, swing trader or short term trader. Stocks in all sectors can have their day - no matter what stage the stock market might be in.
It might be helpful for the medium/long term traders.
Good luck
Red
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