Sectors and Groups to watch

Discussion in 'Trading' started by Brandonf, Jul 4, 2005.

  1. Brandonf

    Brandonf ET Sponsor

    I have always observed that stocks tend to move like a school of fish,
    that is together in a group. If you start to notice, for example, that
    one steel stock is behaving well its fairly likely that the others
    will be as well. It's also worth noting that there is always a bull
    market someplace. For example in the middle of the bear market that
    started in March of 2000 SYY broke out above $20 per share. While most
    stocks were in the process of shedding 50% to 80% of their market
    value's, SYY was up over 50%. Other names in its group showed gains of
    between 20% to 200%, and again this was during an equity meltdown of a
    severity not ever seen before. William Oneil, in his classic text "How
    to make money in stocks" states that 37% of a stocks movement will be
    tied directly to the performance of its industry group, while another
    12% is due to the general sector. All of this should leave no doubt in
    your mind as to how important being in the right groups at the right
    time is.

    With that in mind I have decided to start sharing some of my weekly
    research on sectors and groups with you here on my blog and a few
    message boards. This info will be basic in nature, but it will always
    be free. I hope that it can provide something of a jumping off point
    for your research and will be useful.

    This week as I looked at the groups of stocks I found myself liking
    Stem Cells, Real Estate Operations, General Industrial Machinery,
    Medical Systems and Equipment, Hotels, Oil and Gas Machinery and
    Gaming on the upside. On the downside Steel stocks stood out to me,
    and Semiconductors will if they break down too much further.

    In general the market remains in a tight trading range and I feel it
    is likely to remain that way for a long time. That means that stock
    and group selection will remain very important.

    Brandon

    PS, Please note that I will be starting a chatroom on Hotcomm on
    Tuesday July 5th. It will remain free over the course of the summer
    and probably a little bit beyond that. If you are interested in coming
    by there will be info posted on my website with in the next fee days.
    We are on Relay in SwingTradingChannel.
     
  2. Brandon, what sources are you getting your industry/sector data from?
     
  3. Brandonf

    Brandonf ET Sponsor

  4. nkhoi

    nkhoi Moderator

  5. Brandonf

    Brandonf ET Sponsor