How to use IBD sector table

IBD Sector Leadership

Part of the IBD philosophy and method is based on sector momentum. It looks for growth/momentum stocks in top ranked 40 sectors.

Some year back IBD changed the layout of its stock tables to focus on top ranked sector. The stocks are now shown by sector ranks.

This is convenient way to focus on leading sectors. You can quickly find stocks in sector with momentum.

Within the sector listed stock, IBD further makes your life easier by highlighting some stocks in a box at top of the table.

The highlighted stocks have the best growth characters. Does not necessarily maen that they will make big moves. Sometime by the time the stocks make it to the table, they have peaked or their growth has peaked.

Those stocks are selected based on historical precedent analysis. They match the characters of biggest moving stocks in IBD database from past many years.

If you want to be primarily a position trader then you can focus on these kind of stocks. Overall only 20 odd stocks are highlighted. These stocks often make long duration moves.

You should keep your own watchlist of these stocks as often they make a move several months after they are highlighted in the tables.

They also make good shorts once they top out.

Today we will focus on the sector relative strength in our ongoing series of posts on IBD 200

The past post on IBD 200 series can be found here:

http://stockbee.biz/blog/tag/IBD%20200/