RED DIRT TRADER: 9 Sector's NINE stocks.

RED DIRT TRADER

This blog was designed as a place for me to store links that I find helpful. These posts are not investment advice. If you’re looking for advice call your GO BROKER. My belief is the person who cares most about my investments is ME. My hope is the readers of this blog find the sidebar links as useful sources of information while attempting to learn how to manage their own money. As for advice, my Dad gave me the best I’ve ever heard, “Never trust anyone else with your money or your woman.”

Monday, October 6, 2008

9 Sector's NINE stocks.

This chart will show you the point of the market in which we reside. Consumer staples, Health care, believe it or not Financials, and Consumer discretionary lead the way over the past 65 days. This looks to be early cycle. So, what to do from this point. Looks as though, if you wanted to buy one stock to cover each of these sector's it would be General Electric!!! You would be purchasing all the above sector's with the added touch of of being an Industrial play, also this would qualify as a Technology Play and would no doubt be a Utilities Trade. This would no doubt leave you out of the other 2 Sector's. Energy and Materials. This part of the coming rally could be covered in one purchase. Although natural gas is not thought of being a material, it is the Energy that transforms materials into usable products, therefore, this is what a Bear Market Rally trade looks like to Ol' RedDirt. I'll be looking to GE and CHK for a 10% bang. Now for some fun. With the early cyclical sectors looking to take the lead we really need to look at a financial. So let me see what I can find. Looks like UYG may be the only play for this scared trader. KFT would do no harm as a consumer staple. My individual health care for early cyclical would be FRX. My Consumer Discretionary pick would be WSM. So, there you have it. This tradable bounce will begin soon so pick your favorite stocks and enjoy some gains during this bounce. Just remember, it probably won't last beyond the election.

Please don't take any of this information as trade recommendations. This blog is only intended to collect my personal thoughts on the market.

Thanks to StockCharts for keeping the RedDirtsCharts online for free. Not sure how long this free service will last, but for now, I'm enjoying the hell out of it.

# posted by Chris @ 6:50 PM