Hmmm....
So I know you are a Demand Investor, but also it seems your are also traditional in seeking diversification?
My thoughts on understanding the lesson of this post, from the Teacher (you) to the student (me)
You state:
When you trade, you want the strongest stocks in the strongest sectors, which is why you should monitor sector performance carefully. With that said, lets determine the relative strength of the sectors relative to the S&P 500 ETF, SPY for the upcoming week.
So the S&P 500 is an ETF of the top 500 companies in the US to invest in and you create a sector analysis, comparing the relative strength of what appear to be sector ETFs, and you use this relative strength analysis to help you pick which one to invest in?
And I assume you are doing this in the name of thatcher principle of stock investing called Diversification?
So this is how you guide your sector diversification efforts when investing?
Am I correct?
Please explain what else I should get from this.
Thank you
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@shortsegments I have never heard of thatcher principle of stock investing, something for me to invest and learn. It's less about diversification and more about putting the odds in your favor. So we are still in a bull market, so invest in the strongest stocks. Typically, 80% of a stocks move is due to the index and sector the stock is in. So I like to work backwards first...from index, to sector, to stock.
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Hi @rollandthomas
Thank you very much for the explanation.
I am revisiting Mara tomorrow to see if it’s options dipped, and if there is a mean revision profit to be potentially harvested there.
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