Weekly Stock Sector Analysis – 07/10/13

A stock Chart $QCOR with BUY, Stop-loss and Profit targets

It’s that time of week again where we share our weekly stock sector analysis video with you. The basic themes haven’t changed much from last week…We want to be buyers of Biotech, Materials and Aerospace and defence. We want to be sellers of Financial stocks and Real estate stocks.

The video also runs through our existing positions, all of which were called live on twitter or the blog itself. To summarise our positions: We are long a Livestock ETF – $COW and we are long a Gasoline ETF –  $UGA. We are also long 3 stocks…Our trend-following model got us long $TGA and we have 2 counter-trend trades currently open in $IIVI and $BT.A.

Beware of Correlations – Especially in the Stock Market!!

We highlight in the stock sector analysis video that we won’t be looking for any other stocks from the Materials Industry because of our existing position in $TGA. Remember that the stock market has a pretty high internal correlation at the best of times but if you’re buying 2 stocks from the same sector then the correlations between positions becomes even greater.

Having said that we do find a stock from the Biotech industry called $QCOR. It has recently pulled back after being very strong since the beginning of the year and if we can get the stock for $54.00 we will definitely be buyers. For all of the orders please enjoy the video.

Weekly Stock Sector Analysis – 07/10/13

 

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