I go through and check charts for stocks in the top 30 industry groups every day. My initial screen takes fundamental data and ‘closeness’ to 52 week high into consideration. I look through all of these charts and try to find stocks that “look good”.
So much of this is discretionary and subjective, that it would be virtually impossible for me to describe what a good chart looks like.
Anyway, I’m quite bearish on the market as a whole, so I haven’t made any individual stock purchases since I dabbled in some $AG a few weeks ago. Therefore, these are merely ideas.
#4. Restaurants: $BWLD, $SBUX, $YUM
#6. Processed & Packaged Goods: $K, $MJN
#7. Research Services: $ACTG
#10. Health Care Plans: $AGP, $CNC, $CVH, $HS, $HUM
The industry group data gives you the ability to hone your stock selection process to those in only the top performing industries. Here it helped to produce a list of 11 stocks that reside in industry groups that are currently outperforming the S&P 500 over the previous 3 months. That’s relative strength. The market leaders reside in these groups.