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Sector Rotation

March 15, 2010 – 3:05 pm

In the conference this last weekend we focused on sectors. Most people do not know that the strongest sectors today are; Apparel, Home, Instruments, Aerospace and Defense and Retail, based on relative strength of all sectors. That’s not what most people assume. With the rise to new heights for the NASDAQ Index logic would dictate tech as the leading sector. Not so.

Sector rotation is an important part of picking the best stocks. If you can determine which sectors are going to rise in relation to the universe of all sectors, more than half your work is done for you.

This year the IT departments in Corporate America are scheduled to increase their spending by 6% after shrinking that spending last year by 8%. Then add to that the apparent success of the new Microsoft 7 operating system after many avoided their last upgrade and it seems to point to a rise in the tech sector.

What other sector is going to lead this year?

Good Trading
Steve Peasley

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