Adam O’Dell | Monday, May 13, 2013 >>
I’ve said it before… I’ll say it again:
Cycles drive the markets.
Harry’s spent the last 23+ years studying cycles (among other things).
Actually, analysts have studied cycles for hundreds of years. The interesting thing is, the more we look for cyclical activity in the market, the more cycles we find. In fact, that’s part of the challenge in using cycles — which one do you follow?
There’s the business cycle, the earnings cycle and the commodities cycle. We have the four-year presidential cycle and the Kondratiev Wave “supercycle”— and many more.
In fact, a slew of investment tenets and theories are based on the cyclical nature of the markets, even those that don’t include the word “cycle” in their name. Sector rotation is one of them.
The theory behind this idea is that, at any point in time, some sectors are cycling into favor, while others are cycling out of favor.
The reality behind this idea is that, when you use sector rotation in the right way, you gain an incredibly powerful edge that could help you beat the house…
That’s why I’m launching Cycle 9 Alert tomorrow.
You see, I’ve developed a specific strategy that takes advantage of sector rotation and market cycles. I then worked with a group of 54 beta-testers, who helped me hone this strategy. Now we’re ready to make it available to people like you so you can start beating the house… just like those beta-testers have since last November.
To date, we’ve banked gains of 51% in two days, 113% in 42 days, and 140% in 49 days… (to list just a few of our successes since November).
So how do I do it?
Well, I start by breaking the market down into nine sectors because some sectors perform best heading into market peaks while other sectors perform best heading into market troughs.
Those nine sectors are:
1. Consumer Staples (XLP),
2. Health Care (XLV),
3. Utilities (XLU),
4. Technology (XLK),
5. Financials (XLF),
6. Consumer Discretionary (XLY),
7. Industrials (XLI),
8. Materials (XLB), and
9. Energy (XLE).
After the stock market peaks, the consumer staples, health care and utilities sectors typically outperform the market. Once the market has bottomed, typically it’s the technology, financial and consumer discretionary sectors that lead the recovery. And in a strong bull market the industrial, materials and energy sectors are usually the strongest performers.
All that’s left to do is nail the timing. To do that, we need to know two things: where we are in the current cycle and which sectors perform best during that stage.
And that’s what I do with Cycle 9 Alert.
My expertise is in swing trading, which means I usually hold investments for a couple of months. I’ve found this is the sweet-spot timeframe. It’s long enough for meaningful price moves to develop. And it’s short enough to not be at the mercy of an earnings report that’s several quarters into the future.
So with my goal of holding investments for a two-to-three-month window in mind, I simply focus on the market cycles that match that duration.
While the sector-rotation model takes several years to play out, these same sectors rotate in and out of favor over shorter timeframes, too. Trading in and out of these shorter cycles allows us to be nimble. We can hop on a hot energy sector for a couple months in the summer, and be out by September. Then, we can invest in the consumer discretionary sector heading into the holiday shopping season, and be out by January.
That’s what we did with Kroger, which banked us those 51% and 113% gains in short order.
That’s what we did with Merck, which banked us 84% gains in 15 days.
That’s what we’re doing with the latest additions to our portfolio. And that’s what we’ll do with the newest recommendations I’m researching right now.
If you want to see what we’re holding, what recommendations I’m researching, what cycle we’re in right now, which sector is in favor or out of favor… watch out for our launch email tomorrow.
That’s how you’ll get the edge you need to beat the market.
Ahead of the Curve with Adam O’Dell
Just as daily routines ease the stress of life’s unpredictable nature, so too do investment routines. If uncontrolled emotion – excessive greed or paralyzing fear – is the downfall of every gone-broke investor… then the goal is to remove emotion from the process.