The Stock Playbook covers the entire stock market looking for companies that are growing in revenue and earnings. Dave finds stocks with more buying than selling that are trading above average volume.
If large caps are in favor over small cap stocks, Dave will focus on them. He'll use ETF's to establish a position in a lagging industry until a leader emerges or options as an insurance policy against a long position or a hedge. Companies usually experience their largest stock price appreciation within their first eight years of coming public, so Dave also focuses on IPO's and new issues to find winners. If the market is in a downtrend, Dave will look for stocks to short to make some money during the down time, while we await the next leg up, which always comes, sometimes sooner than later.
Dave invests in what is working at any given moment and when it ceases to work, we move on to the next idea.