This doesn’t have to be complicated.
Is the list of stocks and sectors in uptrends getting longer or is it getting shorter?
Are we seeing more stocks breaking down to new lows, or fewer?
If you can count, then you know the answer.
The question is, are you even willing to count?
The list of stocks making new lows peaked in June. That was over 5 months ago.
Meanwhile, the list of stocks in uptrends keeps getting longer.
Remember, for a while there it was just Energy that was in an uptrend.
Then last month, a second sector was added to the list: Healthcare.
After that, Industrials, Materials and Financials joined the list.
Now Consumer Staples are in an uptrend.
Do you notice how this list keeps getting longer, not shorter?
In bull markets, you get an expansion of stocks in uptrends.
In bear markets, you get an expansion of stocks in downtrends.
Which one are you seeing?
And again, it’s less about whether it’s a bull market or bear market and more about answering the following question:
Should we be spending more time looking for stocks to buy, or should we be spending more of our time looking for stocks to sell?
The answer for me has been the former for quite some time, and that decision continues to pay us very well.
Had we chosen the latter, life would be much harder and frustrating.
How do you choose to live your life?
Fighting trends is no way to live my friends.
Last night was our Live Mid-Month Conference Call where I went over exactly which stocks and sector ETFs we have to own, and which ones we want to avoid.
Premium Members can catch the replay here.
Please let me know if you have any questions or comments. I love hearing from you!