Week of 26 Sept 2016 - 30 Sept 2016

[sd]

Congratulations Blygh! You not only finished in positive territory, but beat the market as well. The rest of us finished in the Red!
I will have to consider another Ride this week. NXPI long- limit 114.-

[blygh]

Thanks SD - I am trying to choose the right sector - or at least a positive sector - tech and biotech - traditional bull favorites - are worrisome - but still offer the best possibilities for appreciation.  There is also the seasonal element.  Last year there was a downturn from September to Feb +/- which we are hard pressed to explain.  As far as I can see it may just be a loss of momentum due to slow growth.  We may be looking at the same scenario.  I watch the financials for validation.  If they are flat then the demand for money is low which means slow growth.  Consumer staples seem to be the safest bet but will not make you rich.  With Christmas coming I feel most comfortable with retail - soon next week AMZN long.  (subject to revision anytime before post time - 21:00 Sunday). 

Blygh 

[sd]

I think the market struggled with valuations and slowed earnings last year, and revised (lowered) estimates.
Biotech and healthcare had a multi-year run higher- and may still offer great opportunities if you make the right selection- but with all of the negative publicity regarding pharma pricing, and it a candidate to be an election football, it may be a difficult sector- but there are always outperformers to find. Of course, with the lofty valuations, any failure to meet expectations carries a serious reduction in valuation by investors.
I think Tech still holds the growth , as you mentioned, and yes may come with greater volatility . Tech continues to change the environment- and i think it is likely to continue to be transformative- I guess if you sub divide tech into the individual industry groups within- and drill down, within the different groups. there will be some areas that will take leadership roles during market swings-
As for retail- bricks and mortar seem to be really struggling- AMZN changing that forever.
Reportedly consumers are now making slightly more money - and that should translate into higher spending....

I don't know what will happen- nor does anyone- when the Fed finally goes ahead and adds a .25 BP increase -likely this December-
That should be viewed as a positive by the markets, as it means growth should be increasing- should be supportive of financials- but we are really at an extended -long in the tooth- propped up, and Fed manipulated market- - managing money supply and rates-
As sensitive as the market watchers are- In Europe, Deutsche Bank is all in the news, and here in the US it is all about the egregious false account manipulations WFC has engaged in for years- at least since 2011- and after being part of the bailout of 2008-
This type of financial engineering by one of our larger banks, is equal to price manipulation by pharma companies, and makes good fodder for politicians seeking a pulpit for their reelection agendas.

I like your thought out rationale to approach the markets based on sector strength- and sector rotation- and appreciate your sharing your views

[Spiderman]

Congrats Blygh,
I'll ride DXPE long this week.
Spiderman