Dear Sylar_Fang, While enjoying my evening's cigar & a glass of red wine here, I'll explain a little: A great investor will only concentrate on growth stocks, of which its CANSLIM requirements are duly met. S/he will verify their fundamental real condition, such as earning growth, QonQ comparison, clean corporate governance, strong expansion (but not based on credit system), sound subsidiaries, and so on so forth.
Contrary to growth stocks, a great investor does not fully trust the cyclical stock. The merit of cyclical stock is exercised by big fund / market maker of which price movement isn't energized by its CANSLIM, BUT merely on the strength within the market makers. For scalpers, swingers, intraday traders who are skilled and trained, it might give them additional profit in relatively little by little amount due to the thin volume & price range that real time market relinquishes. Unfortunately for investors, the risk might not be equal to its reward. Worse when such cyclical stock is occupied & owned by big fund / financial institutions, it could tumble the whole aggregate stock index miserably because its cap market enables it to do so. Under this circumstance, the overall stock market condition is NOT SOUND YET. Love, Aimee from Guang Zhou
