Gluteus Maximus

Buy Sectors, Not Stocks

To further support your thesis, Wall street trading over course of my career of fifteen years has moved to basket/program trading. Institutions are either positive or negative on a sector when it comes to trading. Furthermore, the same can be said for stocks in different sectors. When an order came in to sell, institutions rarely cared what you are selling they just wanted cash. Selling a large cap basket may include IBM, JNJ and GM (yes, GM was once considered a large cap company) the fundamentals rarely mattered.