From CNBC'c homepage:
'Rotate in May' Could Be the Real Spring Market Play
A strong but somewhat uneven stock market rally in the first quarter has strategists looking for underperforming areas to overweight, and overheated areas where exposure needs to be pared back.
In practical terms, that could mean more money flowing to areas such as energy and certain foreign markets, while the defensive sectors that did so well in the first quarter could begin to see outflows.
With NG prices having doubled from a year ago, oil prices relatively stable, I believe this more than ever.
Yeah, I agree. I don't understand how oil and gas markets did not follow the market up with the way prices of natural gas rises and oil has held. If anything I figured it would have outran the overall market.
Hopefully when the markets start to sell off a bit it does not weigh down the energy stocks when they are trying to run
elvis, this really makes a guy wish he had a lot more dry powder. ... now is a great time to buy companies like upl, sd, and even aci. certainly the coal sector has been beaten through the floor, while fundamentals for domestic thermal coal are improving dramatically with the rise in price of ng.
i've taken my 401k's to high yield corporate bond funds, because i believe overall the market will be flat going into 2014.
I am only buying stocks that I perceive as beaten down below a fair valuation, I also remain 50% cash position. The market has shown it expects a downturn, and with all the HFT's one wrong macro event will hammer all the overvalued stocks. Time will tell but right now all fixed income folks are getting killed...there's nowhere to get % gains except the market....gut instinct says this is gonna backfire eventually...I prefer to be on oversold stocks...and I'll add if a big oversell does occur...it's been working...sooooo...I think i'll stay the course. GLTA
Elvis could not agree more....at some point the Dow and S+P have to take somewhat of a breather....you would think the energy sector that has been hammered would not be a bad place to start to see a move....even our own SD could catch a break here.....I think if SD is hedging nat gas at least till end of year with some vigor and with the oil hedges already in place it could be a good rest of the year....especially with restraints on non essential spending and perhaps a cap X change or two forthcoming.....If we could possibly see Nat Gas in the $5.00 area then perhaps we can do something with that Oxy deal that hangs over us.....another cold front still to come so they say......have to think nat gas injection will be lower than last year this week and next.....IMHO -
Short interest peaked at about 58% on April 26th and yet the price rose nicely. I think the shorts are beginning to be overcome by buying interest in light of the rapid changes in management direction.