Sep- market view: Searching for Extremes

Looking to exploit extremes:

Lack of extremes can perhaps explain the challenge of market timing.

Themes and sectors:Tech and Consumer have favorable odds for recovery. Managers "gotta" play these names to get a recovery mileage. And sensible odds/valuation or even oversold plays.As for rate sensitive themes....Banks/Brokers: any upside move should provide advantageous short opportunity:

(BKX- has been working since OCT 05). Not cheap by fundamental standards.
An area of high interest is shorting banks; specifically RKH Index has failed into key rally into key resistance. Tops for the year: May 5 and August 4 again at 155 level.Highly satisfied with mortgage related shorts since this summer:. NEW - short, CFC- weakness, Now brokers like LEH/MS - mortgage exposure can hurt here in the near-term. -- Cover shorts as consensus mania is stepping in.Shorting housing stocks might be overdone from a logical perspective. But psychology little bit left in some areas.NFI- broke down on signifivatn volume, any strength can be shorted. Crude:
USO (crude etf)short on near-term strength. Although, a cycle winner since 2003, further pullbacks are needed.
Interested in a seasonal play -Any upside move caused by hurricane fears can be exploited by shorting further strength above $72.

JBLU- an inverse play of shorting crude. Attractive risk/reward here with a $10 exit.Overdone shorts? / Value Traps:

Certainly not thrilled with the odds of shorting here than homebuilders or some restaurants.Finally, sticking to the game plan of exploiting extremes not much offered on the table. Not many extremes offered in the market place. And sitting on the sidelines appears attractive here for few weeks.
Again, the lack of extremes can perhaps explain the challenge of market timing.