Lg-cap Portfolio Review 12/3/2016

Large Cap stocks are performing well as a group, there are laggards and even fairly soft breadth (this is mainly due to the complete lack of any buying in sectors like Utilities, Staples, and Healthcare, although Tech has recently joined the group), but overall the SP500 is at all-time highs with Financials, Industrials, and now Energy leading the charge.

There is much talk of how the Nasdaq is not participating and creating a key divergence. Growth traders like IBD have been discussing a topping trend due to this underperformance. While this is true that names like Facebook, Amazon, Gilead, etc have been underperforming, but there are plenty of opportunities to make money right now, isn't that why we are all here?

If you are simply following the rotations Financials, Transports, Energy stocks have been showing relative strength for some time. Now no question these could pullback over the intermediate term, they have been making monstrous moves. But isn't it our goal to catch these types of moves rather than think and worry how money has rotated out of some other select groups? I don't know about you but I find it a natural flow for sectors to come in and out of favor. Lets not forget that Technology, and Healthcare lead much of the way since the bull market began in 2009. Financials, Industrials, and Energy have all underperformed the market over the same period, but are seeing strong new rotations as the market moves to new highs.

I for one am not fighting this action and positioning accordingly.

At the open of December our Lg-Cap Portfolio is 80% Long and 20% Cash

We own positions in UNH, EOG, CVX, HAL, BRKB, JPM, AIG, CAT, GE, UNP, MSFT, FB, CSCO, GOOGL, PCLN, CMCSA, SBUX, PCG

UNH

EOG

CVX

HAL

BRKB

JPM

AIG

UNP

GE

CAT

MSFT

FB

GOOGL

CSCO

PCLN

CMCSA

SBUX

PCG