People ask why the DUG is a good play right now despite the high prices of oil and exorbitant earnings of the integrateds. Financials... despite the horrible fundies, the lying, terrible balance sheets that the smart people in the biz all know about, may have a run. The charts are looking that way at least. Others segments are hot or cold. How can this all be... ?
There are a number of reasons but you gotta look at the overwhelming significance of sector rotation. The big money in major mutual funds and other institutional investments has to go somewhere. It does until that segment is played out and then it has to move. I will be doing a whole post on this and do not have time right now but the significance of this can not be overstated.
I highly recommend that everyone learn about this. Also look for a detailed post in the not too distant future. This very important topic is the game the big money plays all the time... and when the bet is wrong or changes (see AAPL earnings report/guidance at the end of last year and how the rising tech sector fell flat after that... because to a large extent a catalyst stopped short the sector flow of big money.... ) things move in a hurry...
In this market especially this is hugely important.
This blog is for informational purposes only. It does not give investment advice.
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