Buy Leaders and Sell the Laggards

It's sure been messy out there.

There just hasn't been too much to discuss in recent weeks - volatility's contracted, and any signs of momentum have just fizzled out.

But that's not to say that there are NO opportunities; it just simply means they're harder to come by, and the probabilities of success have lowered significantly.

Despite all this messy action, we've still had a handful of trades really go our way on both the long and short sides. Buying the leaders, and selling the laggards - despite how oversimplified it may sound - is as prudent of a strategy in this environment as any other.

This chart does a great job of boiling down how we're approaching this market: