For example, your bear market strategies are probably not going to be great during a bull market. Your trend following strategies are probably not going to work too well in rangebound markets. Your mean reverting strategies are probably not going to work during trending environments.
That's the point. You won't want to use a toothbrush to hang a picture on the wall. You've got other tools for that.
And so when it comes to deciding which tools and strategies are best for right now, we want to weigh all the evidence to help figure it out.
Are Financials and Industrials, two of the most risk-on sectors in the market, making new all-time highs again evidence of risk aversion or is this evidence of risk appetite.
It's by far and away the latter:
With Technology taking a back seat through the back half of this year, other sectors have taken over leadership.
Sector rotation is the lifeblood of a bull market. More and more stocks, industry groups and sectors are working.
The Small-cap indexes weren't working before. Now they are.
The Transportation stocks weren't working before. Now they are.
Consumer Discretionary wasn't working before. Now it is. Financials and Industrials were working before. And now they're still working.
Steve Strazza and I put together a Special Event earlier today where we walked through the current market and a series of trades that were put on recently using the Breakout Multiplier system.
One thing I want you to notice is how many different industry groups were represented.
We've had Breakout Multiplier trades in bank stocks, crypto miners, consumer products, movie theaters, gold stocks and even Natural Gas ETFs.
