ClusterGains

As of April 2011, it looked like the stock market was at a top.  Stocks had already been overbought for a while, and yet stocks still managed to rise.  Even if your favorite stocks are in a good long-term trend, it is a good idea to buy some downside protection through VXX, TVIX, or short ETFs whenever the market is overbought.  Any gain that you make on market volatility ETFs or short ETFs should be taken quickly because it probably won't last. 

As of November 2011, the stock market went for a wild ride in the summer and fall of 2011.  In August stocks went down because Congress could not agree satisfactorily on the debt ceiling.  Then, after that, European problems came to the surface with trouble in Greece and Italy.  It was a great time to be in TVIX or TZA during this rough period.

Concerning the long side, commodity stocks are a safe way to play the stock market.  The oil supply will be in a constant squeeze due to India and China buying cars like never before.  This trend will assure success for good oil companies.

Gold, silver, copper, and uranium are in demand, too.  You can do research to find the best stocks and you should also take a look at some of the stocks in various sectors that are listed on the right side of this page. 

As it was mentioned on the home page, diversification of some kind should be implemented in any portfolio.  It is also wise to be in cash or bonds at certain times.  Nobody can pick the exact top and bottom of stock market cycles.  However, I firmly believe you can make double digit returns year after year if you will protect yourself in times that are statistically bad.  One Wall Street saying is "you can't go broke taking a profit."