Top Industries | 1 month performance |
Building – Residential Comm | 14.5% |
Medical – Outpatient HM Care | 13.3% |
Printing – Commercial | 12.1% |
Medical – Nursing Home | 11.9% |
Medical – Hospitals | 11.6% |
Textile – Apparel | 11.3% |
Telecoms Services | 10.8% |
Medical – Dental Supplies | 10.8% |
Aerospace – Defense Equipment | 10.7% |
Retail – Discount | 10.5% |
Bottom Industries | 1 month performance |
Steel – Producers | -20.10% |
Coal | -16.40% |
Mining – Silver | -15.70% |
Food – Meat Products | -13% |
REIT – Mortgage Trusts | -11.20% |
The importance of sector's belonging
- Do not turn completely bullish or bearish on the whole market. Look at which sectors are bullish or bearish;
- When you see a move happening in a sector, act upon it immediately, irrespective of the overall market direction. But do not act the same way on other sectors;
- Confine your trading to prominent stocks in prominent sectors. If you cannot make money out of the leading sectors and stocks, you are not going to make money out of the stock market as a whole;
- At any time there are only 3-4 groups leading the market.
Jesse Livermore
One of the most important observation of mine about the market is that even the worst stock in top sector will rally more than the best stock in lagging sector. Sector effect is as powerful as blowout earnings or relative strength.
Pradeep Bonde