Dana Lyons, Fund Manager and Editor of the Lyons Share, joins us to discuss the turbulent markets, through the lens of quantitative and technical analysis, and review which sectors look appealing for both long and short strategies. We start off discussing how his approach recently has been to take a two-pronged approach during this recent relief rally in the markets to take some profits on new positions that they put on during the lows in mid-May, and also to sell out of sectors or positions that they no longer want long exposure to now that they’ve bounced up near resistance or prior breakdown levels. Dana makes the point that this is part of the process of weeding out yesterday’s heroes in one’s portfolio as part of sector rotation strategy, and that prior leaders in the general stock markets likely won’t be leaders in the next upcycle.
Next we shift over to the technical outlook on the energy sector, and how he is viewing the continued strength in the oil sector and oil and nat gas stocks as something to continue holding and buying on dips, but he’s not actively buying here or worried it has topped out. Dana also mentions he is using the recent bounce in other related energy sectors like uranium, lithium, and rare earths to lighten up or exit those positions. In addition, he is using the bounce in the agricultural commodities and grains to lighten up or exit those positions as well.
Click here to stay up to date with Dana at the Lyons Share website.