Current Market Outlook
I follow the theory of Sector rotation in terms of what the movement of money into particular sectors means for the market cycle and . Right now based on my positions I can tell what is moving up and what is moving down.
NWL is a Consumer Staples sector. This is one of the best performing sectors of the current year and has outperformed the market as a whole for the last 4 quarters. This, combined with MO in Consumer Staples and Utilities companies like DTE and DUK , is what I am net long. Materials companies such as EMN I am net short. Technology is also showing signs. Yesterday I took a day trade short on JNPR which worked out after a downgrade. M and WMT were plays this year.
Money "flight to safety" of dividend paying, stable and well understood companies paired with retail failure and lower demand for raw materials is a model that points to one thing; a bear market.