[isatrader]

Good reply.

Stan states, more so in his latest Financial Sense news hour interview, about rotation being one of the key aspects of any bull market. So do you think he is more referring to rotating into stocks showing continuation patterns and less so stocks starting late in the bull market from stage 1 base?

I think that logically he would be referring to rotation between the strongest sectors as that's what the method focuses on, as normal pullbacks /consolidations in stocks in strong stage 2 advances can last many months (social media might be a good recent example) during which time other stocks / sectors can take the lead, and occasionally new players can come on the scene. But the later in the market move they begin, the less chance they have of a sustained Stage 2 advance, as when the market rolls over, pretty much everything gets hit. But the late emerging leaders can become the sectors to watch out for at the start of the next major market Stage 2. Mark Minervini's book talks a bit about this subject.