During this morning’s internal strategy session with the All Star Charts team, one theme we hit upon was that many of the stocks we want to be long have already had big runs making it irresponsible to get long here, and all the stocks we want to get short have already had big recent legs down and we don’t want to chase those either!
I mean, to give you an idea, just look at the charts of healthcare ETF $XLV which is made up of many small-cap names, and $IWM — the Russell 2000 small-cap index — both are going in completely opposite directions! That pretty much sums up the predicament we find ourselves in right now.
It’s a messy market out there!
So, naturally, we should look at companies that manage risk as their business! [Read more…]