Why you should focus on top sectors | stockbee


Why you should focus on top sectors

Market Monitor  

Daily# of Stocks Up >4% on high volume313A minor weakness yesterday is immediately bought
Daily# of stocks down >4% on high volume   82
Primary# of stocks up >25% in a quarter3294
Primary# of stocks down >25% in a quarter229200 is the number to watch on this.
Secondary#of stocks up >50% in a month29But this does not as yet indicate extreme bullishness. 
Secondary#of stocks down >50% in a month2
Secondary#of stocks up >25% in a month207This is where we play, trying to catch as many 
20% move as possible.
Secondary#of stocks down >25% in a month34
Primary fast   MM 34/13 + 2822
Primary Fast   MM 34/13 - 644

  • The market continues to offer good trading opportunities.
  • A minor weakness on Monday was immediately bought.
  • At this level the Market Monitor primary indicator readings are reaching the pullback/dip zone.
  • In this market time and again when MM reached those levels there has been a minor dip and after which the rally has resumed. 
  • What we are witnessing is a very good sector relay race. Which by the way is very distinctive characteristics of bull market.
  • Sectors breakout, make a first leg of the move and then consolidate, while this is happening another set of sectors breakout.
  •  After some time the first set of sector (which broke out few months ago) has second set of breakout moves.
  • Sector based theme can persist for a long long time. Many times for years. 
  • You will see during a long duration bull move, same set of sectors keep reappearing in top 20 sector list.
  • That is why the sector tracking method which I detailed in my IBD Daily Summary post is so useful.
  • In addition to tracking the top 60 stocks from the top 20 current sectors , you can also track the top 20 stocks from top 20 ranked sector 3 and 6 month ago.
  • If you focus on the top sectors like a hawk, you would never miss a big move.
  • The number one sector currently is China. You cannot go wrong buying a breakout or pullback on Chinese stock currently.
  • That is why I put together that China stock list and all that you have to do currently to find a 20% profit trade is to buy b/o from that list.
  • 20% profit trades in this market so far are not at all a problem. Till this party continues your objective should be to catch as many of them as possible.
  • A stock which is not moving immediately after a b/o currently is not worth holding for long unless it is a 50% plus profit potential kind of long term trade.
  • The key really is to be organised to profit from such explosive moves. You need to be set up well in terms of scans, software, databases, news sources etc.
  • You also need to do all your thinking about the methods and then it should become a reflex action continued.....

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