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Investors: Forget the Market Theories; Watch These Two Sectors to Determine Broader Strength


Considering semiconductors are in almost everything consumers buy, and all consumables have to be transported, these sectors typically lead economic expansion.

Now that I've got your attention, let me conclude with this parting thought: It is not necessarily bad, it could even be fruitful, to invest in momentum-based trends, as long as you bring your umbrella and are willing to use it at the first sign of clouds. The SPX, on a purely technical basis, can easily have a 4% drawdown to ~1,400 -- the August base -- with the market remaining technically sound. But keep in mind this one caveat: It's what causes the drawdown that matters, not the drawdown itself.

I hope this helps and finds you well.

Editor's Note: Read more at Tesseract Asset Management.

Twitter: @TAM_News
No positions in stocks mentioned.

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