Staying On Your Game
Technical
analysis time! A few points to make. Yes, there continue to be
a good number of breakouts. Sectors that continue to show strength include Homebuilders,
Restaurants and Trucking where a host of
names have popped out. Stay with them until their action changes.
But...my next point is that you need to
continuously stay on your game. The “market” is not as important as
sector rotation. This is a sector-by-sector, stock-by-stock equation. Just in
the past few days, I have noticed that Oil Services
are gaining strength and Utilities appear to have
put in a near-term low. This is a change.
On the other end of the spectrum, I have been noticing cracks in some of the Tech
areas. I actually had to put a “Tech
Breakdown” page on one of my screens. The more names that are added,
the closer I come to calling a top. Recent names that have broken near-term
support are
(
BRCM |
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PowerRating),
(
CIEN |
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PowerRating),
(
JNPR |
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News |
PowerRating),
(
PMCS |
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News |
PowerRating),
(
QCOM |
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PowerRating),
(
RFMD |
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PowerRating)
and
(
SLR |
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News |
PowerRating). I would not ignore this.
Lastly, it is getting towards the end of the year. If you are new to this site,
I wanted to reiterate what I do during the last month of the year. I
go on a retreat by myself. No, I don’t go to meditate or listen to Yanni
tapes. I go on this retreat by myself to go over my past year and plan the next.
I have learned that a major difference between success and failure has to do
with how you treat your life. I treat mine like a corporation. I did not invent
this. I learned this from some of the greatest success
stories.
This weekend, I am going to review 2001. Some of the things I am going to go
over are:
Family:
-
Did I spend enough quality time?
-
Did I handle specific situations
well? -
Was I a good father and husband?
Health:
-
Did I eat right?
- Am I in good shape?
Business:
- How well did I manage money?
- Did I spend enough time on it?
- What were my biggest mistakes?
- What were my biggest successes?
You get the hint. There are many other
things I will review.
Next, I will plan out 2002…weekly, monthly and the year. For me, it is not
enough just to wake up every morning letting the day happen. I need to control
my day. Most people do not do this. They just let things get away.
I will work backwards. My first question is: “Where do I want to be at the
end of next year…in all categories?” Then I will formulate a plan. It is
not good enough just to state a goal. You have to figure out how you are going
to get there. Dorothy couldn’t get to Oz without the yellow brick road.
I will then write up a broad-based plan for what I want to do and where I want
to go. Do you do this for yourself? I used to make fun of people who did this. I
don’t make fun any more. Some of the goals will not be achieved. There is no
such thing as perfection. But it is a thrill just to get on the road. I urge you
to consider this. It has made a definitive difference in my life.
I will be putting out my quarterly review late next week. I want to wish
everyone a happy and healthy holiday.
Gary