Missed the Rotation

Did you know steel and iron stocks have been doing well, during this 30 point “dip” in FEYE? As I am tormented, daily, in SPLK and FEYE, seemingly fantastic companies, the very worst companies in the world, STLD, MTL,  AKS and MT are hitting new highs. My pick for 2014, CRS, is at a new high.

Telecom stocks, T, USM, VIV are doing great.

Oil and gas stocks, PFFFFF, fughetiboutit.

CWEI, WTI, HK, NBR, PBR, SGY, just to name a few, are much higher.

It’s ridiculous, frankly, seeing these stocks rip to the upside.

FOR CHRIST’S SAKE X is UP 13% OVER THE PAST WEEK.

Banks too.

Here is the lesson, sadly enough, once again.

I wasn’t paying attention to the signals, the rotation in front of my face. It was right there, right here, yet I allowed my emotions to take the place of reality. I embraced a false reality, based upon sentiments, instead of coldly  moving into sectors that were enjoying the upswing of rotation. This is an ongoing event, a swift move away from high multiple growth stocks into stodgy industrials–boring companies with earnings.

In the end, high growth wins every single time. But there will be losers (ZNGA) along the way.

Since most of us are traders, it’s important to remind ourselves during periods of duress to trade.