Registered User
Joined: 1/8/2007
Posts: 56
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I am wondering if any of you more experienced traders can shed some light on using Industry/Sector performance as a long trading strategy? After looking at "Barcharts.com" and seeing the recent past history of the sectors in positive action it would seem a great thing to be able to find sectors that are in the begining stages of major investor interest. For example the "Shipping" or "Truck and Other Vehicles" have show almost unbelievable uptrend in recent history.
How does one find sectors that are down and starting their "up-cycle" Is this a matter of a daily review of all the sectors or are their searches that one can untilize to find such sectors? Does one simply grab onto the coat tails of these sectors already showing 60-80% gains or are these now the has beens that will be sold off in favor of the next sector(s) of major investor interest?
What say you all?
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Registered User
Joined: 4/18/2005
Posts: 4,090
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Well. I have been trying to do just that... and took quite a knocking. Ihave made more monety grabbign the coat tails. I think the thing is to match the general market... so when you go looking for bottoms you aren't looking fo long term bottoms... most sectors seem to be moving... so look for intermediate bottoms..2-6 months, and consolidations.
I think in a more bottoming general market or the tail end of a down trend you could start searching for bottoms by either the "bottom finding tool" APSLL mentions in another thread or by findingsectors that are crossing up through their 250 ma and pick the stocks with in that are crossing up through their 100 ma.. that is what I do.
I know your fear of getting in to late on an up trend. I try to find bottoms myself. It is probably better to look for completed bottoms or completing bottoms. smoe bottoms fail so wait till they complete seems to lower risk. Some of the proffit from the bottom of the bottom are gone.. but you never really know how much of that you are going to get.
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