First Three Weeks of 2016

The "First Three Weeks of 2016" have been very difficult for many stock investors. Please note "investors" is key. Many 401k's, IRA's and buy and hold types etc. are getting torched by this current BEAR Market. Many sleepless nights.

"Traders" are much more flexible and should be able to use this volatility to their advantage and to manage risk.

On 1/1/2016, I posted this Tweet:

Having a plan and trading that plan. Sticking to it especially if it running in the direction you anticipated is very satisfying and profitable.

Simply following a short tern Sector Rotation can keep you clear of "Head Winds". The one above is simply a (14)  Day Sector Relative Strength offered for FREE by Stockcharts.com. It's worth checking out regularly as a Tool. You can adjust the slider in lower right corner for the time frame you would like to review.

In the example above the "Flight to Safety" was crystal clear by the spike in Utilities. Time to trim profits and or set tighter STOPS. Not the "mental stop" B.S. either. A hard stop that you determine
is your risk tolerance or a technical level.

Now, it's a great time to keep close tabs on the Sector Rotation for "Risk On" and it will get here eventually. Be ready for it.

Trade smart and keep it simple.

Have a nice weekend  and happy MLK Day on Monday.

Thank you for your support!

Cheers.