Category: sectors
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How most traders trade without an edge and don’t even know it
There are two mistakes most traders make when building a basket of trading setups. 1. They trade setups without and edge.2. They trade the setup in the wrong market. Your trading “edge” gives you a reliable idea of how much you can expect to win with your setup over time.…
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On the Radar: Residentials
Residential Real Estate and homebuilders is one of the hottest sectors right now, showing strong accumulation, price patterns and relative strength. One of my favorites is DHI. The chart speaks for itself . . .
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Education Stocks Showing Accumulation and Relative Strength
A few sectors asserted themselves during last week’s market up move. Education stocks are on fire and showing buying interest from the big boys. While most stocks are coming off bottoms and nearing resistance levels, education stocks are near recent highs. Focus list stocks include EDU, DV, CPLA and APOL.
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Airlines
I have been saying almost non-stop over the past couple of weeks that airlines are in a short to intermediate term bottoming formation!!! Take a look at the capitulation day in mid-July, followed by that purdy volume pattern. Does it get any better than that? As noted earlier today, I…
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Staying Away From Steel
While I am decidedly bearish on most commodity sectors, the one sub-sector I am staying away from is steel. Steel stocks are all over the place. Take a look at the sampling below. Two steel stocks have made huge upside moves and could be reversing the recent topping pattern (AKS…
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Overbought Sectors
Here is a list of sectors with the highest stochastic readings. I use this information for three setups: 1. To find sectors with good chart patterns and await a pullback for entry 2. Find sectors with bad chart patterns that are bouncing to resistance and ready to short. 3. Find…
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Sector Analysis: Discount Variety Stores
As many of you know, I usually spend Sunday evening analyzing sectors and the hot stocks within those groups. Due to time constraints I’ve been skipping this watchlist ritual, instead only trading stocks that I find through my scans. I had some free time today and was surprised to see…
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Sectors Analysis
The 20 most oversold sectors: The 20 most overbought sectors How do I use this information? In the overbought sectors, I look for charts where stocks are near highs and wait for a healthy pullback. In oversold sectors, I look for stocks oversold near support that have good risk-reward potential.
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Sectors Nearest New Highs
Here is a list of sectors ranked according to “percent of 52 week high”. Most sectors on this list will come as no surprise. However, “regional southwest banks” threw me for a loop. I dug deeper and looked at individual stocks and did not find one that I’d put on…
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Today’s Entry: CSX, DZZ and MTL
I bought 100 shares of MTL at $143.46. The strong broke out over $140 yesterday on strong volume. It’s one of the strongest stocks in a strong sector showing loads of accumulation. I may be a bit early on entry (I usually don’t enter at overbought stochastic levels), as the…
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Industry Strength
Here is a list of the top performing sectors of the past week. My favorite technical pattern is Steel.
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Time to Reload Shorts?
Some beaten sectors have retraced to levels that make for attractive short entries. High on my list is education services. As for individual stocks, my watchlist includes CPLA, APOL, DV, EDU, LTRE and CECO.
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The Ag Gap
I sure am glad I decided to wait for more of a bounce to short ag. Geez. All of the ag stocks are making big moves based on this headline, “Monsanto ups profit view on corn, herbicide strength,” and a few other headlines. I’m going to take a step back…
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Sector Volume and Market Notes
One of two things will happen this week. Either we get a major decline or that capitulation move that everybody has been waiting for will lead to a nice bounce. I have no idea what will happen, but I am positioning myself for either outcome. Here is a list of…
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6 Bullish Metal and Mining Stocks
Surveying the top sectors over the past week, I see a number of bullish charts in the metal and mining complex. The six charts that I will be watching next week are CLF, MTL, SID, ZEUS, CENX and JRCC.
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Today’s Hot Sector: Agriculture
Yesterday it was the financials and real estate, and today the hot sector was agriculture. Great move if you caught it. Now the million dollar question is whether this move was due to short covering or the start of a reversal that will resume the sector uptrend. More to the…
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Sector Review
Here are the top performing sectors last week. There isn’t much that has me excited here. Most of them were bounces from some of the worst industries over the past few months, like mortgage, cement and building materials. One sector I do like is Ag Chemicals.
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Sector Review: Where Have the Momentum Sectors Gone?
As usual, I went over the this past week’s top and bottom peforming sectors. Most of the sectors that performed well do not look good as longs. This is not a good sign for the market. At best, it signals new leaders are emerging. Worst case scenario is that most…
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High Flyers Have Lost Their Wings
My focus list, which is mostly comprised of momentum stocks, looked ugly today. Not only was there a lot of red, but many stocks have broken major support levels. Because of this, I cannot play a bounce in these stocks. I never play bounces when support has broken. Many of…
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Sector Review
This was not a great week for the market. We still don’t know if the character of this bull market has changed or it was just a natural correction. Either way, after a negative week, it pays to make note of what is working. During a week where every major…
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Sectors that are Working in this Volatile Market
Two sectors that have withstood current volatility and selling pressure are Education Services and Aerospace/Defense. A few stocks from these sectors of particular interest are CPLA, EDU, BEAV and ATK. CPLA Chart: BEAV Chart:
Paul J Singh 