After a very tough month of November, bulls are now back in control and the strong sectors that gave us such a great profit this past fall are once again heating up for more gains.
Like this autumn's rally, it is important to be choosy about where to put your money to work. Stocks in the middle are still prone to choppy conditions; especially with the low volume nature that has thus far exemplified this rally.
Making money in the market is counterintuitive to natural logic. Stocks like MOS are overbought, yet this is where the bid is catching all the dips and where funds are putting their money in order to bolster their bottom line as the quarter runs to a close on December 31.
We can take advantage of this situation by paying attention to where institutional money is likely to support these stocks and entering with them in the high flyers. Every market environment has a theme. The theme of this market is to buy high and sell higher in the areas that the institutions are paying the most attention to.
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