Rotation is Underway

Over the past two weeks, there has been significant rotation out of commodity related stocks back into semis, drugs, hospitals, even home builders.

The first half of 2015 was marked by sharp reversals in oil and gas stocks, permitting many swing traders to bank serious coin in the process. Over the past month, however, this trade has grown stale and the glass jaws of oil men have been shattered in the process.

Over the past two weeks, entire industries have been decapitated. I am talking airlines, copper, oil exploration/equipment, nuclear, gold and steel. Now this all correlates rather nicely with seasonal trends. If we were to obey said trends, we are in for a bit of a surprise, and soon.

As soon as June starts, the hedge fund industry turns into sloth. They depart, via helicopter, to their summer destinations and order junior to man the trading turrets. While summering, these managers inebriate themselves with cocktails and cocaine their faces, hedonistically, giving zero fucks about stocks in the process. On occasion, the markets nosedive during the summer months, most likely due to an elaborate prank from a misanthropic billionaire, merely trying to ruin the pastoral vacations of his peers. Most of the time, markets do nothing. Volume dries up and yield becomes interesting again.

Utilities, REITs, oil pipelines, closed end nonsense–all become targets for junior manning the desk. He has strict orders “not to fuck anything up,” so he targets low beta dividend plays–because he’s a pussy and that’s what pussies do.

As for you: you’ll most likely blow yourselves to smithereens, classic bozo the clown style. You’re better off reading iBankCoin and taking notes, hoping to glean small crumbs of information from the man in the time machine, than ruining yourself–again–by executing financial-based decisions.

At the end of the day, we’re in a raging bull market, cock out, balls to the ground, running with sparks bouncing off them. In the event we are to rotate hard, seek refuge in beer and drunkard names, like BUD, SAM, and maybe a little TLT in July.