Gil Morales and Chris Kacher

We note that the Dow and S&P Index appear to be acting relatively weaker than the NASDAQ Composite Index as the indexes, overall, do what they likely have needed to do, which is take a break for a couple of days.

What may be significant is that a number of "stuff stocks," ranging from miners (pick one) to oils (again, pick one) to machineries (CAT, CMI) to diversified operations (UTX) are getting smacked around here over the past couple of days, which seems to argue for some rotation. If this in fact pans out as it appears to us currently, it would be positive to see.

Technology companies are probably the best levered to benefit from any inflection point that the market may be perceiving here as the potential for real "change" in November could set in motion a change in tone when it comes to the oppressive economic policies favored by the current Administration and Congress. As well, the internet, now known as the "cloud," and all of its enabling components in the realm of social-networking, mobile-computing, virtual networking, etc., etc., is still alive and well, and as the secular move to virtuality continues to add meaningful value and efficiency for private and public enterprises everywhere there will be companies that remain both strong drivers and beneficiaries of this shift.

A Trading Lesson in LNKD

Speaking of which, today’s action in LNKD deserves comment. As members should know by now, Portfolio Simulator Dude (PSD) is a composite character we've created in our Follow The Stock section based on the numerous emails we receive from you all that reflect any number of trepidations, fears, confused moments, etc. that tend to beset (mostly) less-experienced investors, although they can become an issue for any investor regardless of their skill or experience level. For those of you who might see fit to make fun of PSD, keep in mind that he is a fictional character, so you are in sad shape if you find that you have a deep-rooted need to make fun of the investing foibles and follies of PSD!

Gil Morales and Chris Kacher

Gil Morales and Chris Karcher are co-founders of the Virtue of Selfish Investing.