• Top Sectors for the Rest of the Year

    by  • October 25, 2012 8:57 am • Broad Market Analysis • 0 Comments

    In October, I was lucky enough to fly out and present at the FX and Options Expo in Las Vegas. In addition to my presentation, I also sat down with Tim Bourquin from Moneyshow.com and discussed what my favorite sectors were for the rest of 2012. Check out the video below or scroll down for the highlights.

    My two favorite sectors and highlights from the video:

    Homebuilders (XHB)

    • Strong price action, with many up more than 70% during the past 12 months
    • Analysts continue to doubt them. As a contrarian, that means there could be upgrade potential.
    • KBH, TOL, & LEN all look solid

    Bottom line = Any and all pullbacks should be good buying opportunities

    Consumer Discretionary/Retail (XRT)

    • XRT near all-time high, yet all we keep hearing is the “consumer is dead”
    • Continued doubt should provide fuel for the rally to continue
    • LULU, UA, CAKE, and V all stocks to watch.

    Bottom Line = Consumer and retail stocks should continue to climb the “wall of worry”



    Joe Bell is a Senior Equity Analyst and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2006, and has more than eight years of experience in the financial services industry. Joe has been quoted in national media outlets such as Reuters, TheStreet.com, SmartMoney, WallStreetJournal.com and the Associated Press. In addition, he is an experienced presenter on options and trading, with experience presenting at live seminars, college universities, and online webcasts. His strengths include short-term trading and advanced option strategies, with a focus on technical- and sentiment-based analysis. Joe originally hails from Columbus, Ohio, and earned a B.S. in Finance and an M.B.A. from Ohio Dominican University.


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