It may not feel like the time to deploy any strategy in the market other than run & hide, but at least one pro isn't backing off due to the ongoing EU debt crisis.
In fact, Rob Sluymer, a technical analyst at RBC Capital, is pursuing an "intermediate term opportunity" (3-6 months) with a distinct "seasonal bias." He says we're still early in the recent trend of cyclical leadership and that Industrials, Materials, Energy, Technology and even some Financials are going to continue to work higher.
Rather than waiting for a stock to hit a 52-week high, Sluymer searches for budding leadership on a shorter-term basis, and looks for relative outperformance over a few weeks or a few months. Within those movers, he says there are two distinct types of profiles he see in the market: Leadership names and down & dirty names.
Within Industrials, Sluymer says stocks like Cummins (CMI) are worth owning through year-end and into the first quarter, and will work for the seasonal effect.Read More »from How to Play the Euro Crisis & Capture the Seasonal Effect