How I determine what to trade is simple. What do I know? Do I know a stock, industry, sector or ETF well enough to help me make money off trading it either long or short.
If not and I want to explore the possibilities then I am going to do everything I have said in the last few posts about determining where we are in an economic cycle, checking the charts both daily, weekly and monthly and also explore the fundamentals.
Since we don't have a specific sector picked out to go long or short at this point we will just leave the fundamental issues alone for now.
In the next few posts lets look at the sector spiders on six month, weekly and monthly charts and see what actually looks strongest and weakest now.