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Markets. We are in a long term secular bull market. Money is slowly moving its way back in after being out for 13 years. There have been 6 or 7 significant correction during this bull market. They reset and then leadership resumes and markets work their way higher. He makes moves to protect his portfolios though corrections. He feels we are a long way through this correction. As more stocks start to perform better technically, things will start to quickly improve. It looks as if we are going to re-test or even cut below the recent lows. Healthcare has really taken it on the chin recently so he has been stopped out of a lot. Consumer discretionary is a beneficiary of low energy prices. Financials also have benefited, especially US financials. If we had a crisis on our hands this is not how they would perform.

European equities. He saw deteriorating breath in Europe in April. He stopped investing new money and tightened up stop losses. He still has a couple of tech companies there. He would rather not recommend a single European name at this point.

Biotechs have been creamed over the last couple of days. As a sell off picks up steam, investors look for anything they can take profits in, so biotechs have been hit hard. Investors should be looking hard at the big names in this sector. This group will likely have a very good turn as markets start to improve. He likes GILD-Q.

Within Tech he likes the services companies. They did a good job of the acquisitions they made. The stock has pulled back but not broken long term trends. Pick it up here.

Stocks in developed economies are likely to see multiple increases as money finds its way back into them. The long term picture for commodities is as an underperformer to equities. It is likely to be a 10 year period of underperformance.

Transportation and infrastructure. They have very little exposure to oil and gas, which he feels will be weak for a long time. This is the one he would take in the engineering space.

Historically not a good time to buy it just before a new product. This one includes China as well. The stock is not set up perfectly. It is not expensive and there is a mountain of cash, but this is not the time to own it.

Financials have the biggest weighting in his portfolios (mostly US). Large US banks are good. Regional banks could be more interesting or KRE-N that invests in a basket of regional banks.

(Top Pick Oct 9/14, Up 24.68%) This is the biggest position he has. It is in the right sector and is a leader in the sector. He does not use a stop loss when there is a break in liquidity, the bids just fall off a cliff. He does not sell in that case. He manages stop losses manually.

(Top Pick Oct 9/14, Down 9.2%) Rails rolled over and this one went along for the ride.

(Top Pick Oct 9/14, Down 6%) They are a REIT but own cellular towers. He moved to tech and consumer.

Healthcare has been very. Then it broke down very recently and he got stopped out. That is in process. The leaders are getting hurt as they usually are before a correction. They may be the first to take over when things turn around.

Europe has been weak in auto parts because of VW. MG-T made comments that it should not have significant impact on their business. He would hold off stepping in until we see stabilization.

Retail is another area he really likes. Some of the discounters are really attractive. COST-Q is a strong stock within the group. It is likely to put up good numbers. Technically when you go through a correction like this, you should look for things you want to own. He looks for companies that bottom when the first low takes place but don’t retest it when the rest of the market does.

Defense does stand out for him. This group has leadership in this market.