If you want to do well in today’s market, ignore this rally. Pay all your attention instead to the only class of companies you need to know about. I call these companies the “best of breed.”  They’re probably the least-talked about companies in the market. Many investors are missing the boat. And that’s a shame.

This has been a tough quarter for companies. Compared to last year’s second quarter, profit is down roughly 31 percent and revenue is down even more. Wall Street thought it was going to be even worse. So in one of the worst quarters ever, the market has rallied.

Investors learn all the wrong lessons from a rally like this. Nothing about it makes sense. The smallest companies are outgunning the biggest one. The most heavily shorted stocks are doing better than the least shorted stocks. The companies with the worst analyst ratings are outshining the ones with

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Andy Swan is a trader, a friend, and a href="http://twitter.com/AndySwan"a funny guy/a.  divbr //divdivHe's proven himself in the market and in business as one of the sharpest tools in the toolbox./divdivbr //divdivAnd I respectfully disagree with him on this point he made today:/divdivblockquote"The best way to take emotion out of trading is to stop caring if you lose and STOP WATCHING your P/L numbers."/blockquoteblockquoteSource: "a href="http://andyswan.com/blog/?p=181"Emotion in trading must be killed/a"/blockquote/divdivdivThis sentiment may have had its genesis in the following thread:/divdivblockquotea href="http://twitter.com/TradeIdeas/status/1382058756"@ToddStottlemyre/a @IRON100 Interesting conversation. I trade w/stops of course but watch a real-time Pamp;L -allows me to trade 8-10 positions/blockquote/divdivHere's my view on the importance of the P/L in trading:br //divdivbr //divdivBy no means am I saying cut your trade if you are down a penny.  That said, nothing tells you more clearly how you are doing than your P/L.  Unlike your emotions which say to you, " . ...