The New Normal!!!

Blogging after a while due to hectic work routine and travel. However, I have been following the markets and trying to figure out my next strategy. The market has a defined range and thats where it is trading (1020 - 1130). Other characteristics are low volumes; sell first ask questions later; and mix macro economic data. This leads to lack of any catalyst for it to go further down or up. Let me try to break it down: 1) lets understand why market is range bound and what can trigger an upside 2) Which sectors and companies will benefit the most

Markets are range bound due to "New Normal". Elections could be the next catalyst for a higher leg

• Most institutional investors are scared to lose money and not investing in equities heavily. As a result the volumes are low and that is confusing traders who trade technical. Most of the historical data is garbage now as this "new normal" starts from this year.
• Revenues and earnings of atleast 60% S&P companies beat expectations however job growth is slow. The reason is CEOs are scared to invest in people when they got use to getting the same work done by lesser number of people. Most companies have gone through massive cost reduction exercises, I was part of some, and developed processes and systems such that most redundant work either does not exist, or streamlined, or automated. In short, companies have learned to work smart.
• The jobs are not growing because companies are sitting on cash waiting for regulations and next move from our president.

There are still some sectors and companies which are working better than the other and consistently making highs. We need to do some stock picking in order to avoid being played by the market. Here is what I think is working: Agriculture, Technology and Energy.

Follow these sectors and identify your winner stocks. I project 10-12% return by end of year!!!

Will leave you with my top pics in the three sectors : Mosiac (Agriculture) Cree (Technology) and RIG (Energy). Do further research about comparable companies and management before investing!!!