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.....