Why you should focus on top sectors

	Market Monitor

Type	Indicator	Value	Comments
Daily	# of Stocks Up >4% on high volume	313	A minor weakness yesterday is immediately bought
Daily	# of stocks down >4% on high volume	82
Primary	# of stocks up >25% in a quarter	3294
Primary	# of stocks down >25% in a quarter	229	200 is the number to watch on this.
Secondary	#of stocks up >50% in a month	29	But this does not as yet indicate extreme bullishness.
Secondary	#of stocks down >50% in a month	2
Secondary	#of stocks up >25% in a month	207	This is where we play, trying to catch as many 20% move as possible.
Secondary	#of stocks down >25% in a month	34
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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