10 Best Performing Industries

[cpatte7372]

Hi,

I have been assessing stocks with their respective industries. I use CBSMarketWatch. I was wondering if someone knows how this financial website and others like calculate the 10 Best Performing Industries?

Cheers

Carlton

[cpatte7372]

Also,

As a short-term trader, is it better to compare a security to its sector over a 3 month period or just a month. Most sites provide 10 Best Performing Industries over a 3 month period.

Cheers

Carlton

[soylent]

Hey Carlton!

How's it going?

I know I mentioned this before, but checkout IBD... They cover that stuff and really love 'industrial classification' -- in particular looking @ rising industries that were in the low 100's and have recently moved into the top 50 range... So, your question is very pertinent: IBD seems to think it's worth buying industry groups that are rising. IBD also has some other rules, like: 95% -- any stock doing better than 95% of all other stocks is higher risk of a pull back. (I think it's 95% -- might be 98% but, your question is on-track...)

Back to what I mentioned before about IBD: For my stock scans meeting technical criteria, I look for stocks that are highly rated by IBD then I look for stocks matching my technicals within those groups...

-c

[cpatte7372]

Hi Carl,

I doing fine.

I checked out IBD. Their site appears to be really good. However, you need to be a premium member to access information such as 'industrial classification' As a matter of fact you need to be a premium member to access almost anything worthy.

Do you know IBD rate their top industry performers?

Cheers

Carlton

[soylent]

You mean top companies in an industry?

They look @ a number of things. Consecutive growth, accumulation by mutual funds, and RS (relative strength) to other stocks in that group / the overall market.

Yes, you do need to be a member -- or, get the newspaper. It's printed daily what the top industries are. I find it 'enlightening' as a relatively new trader (9 months or so). It's worth a free / trial subscription to see if you like it. I do.


-c

[cpatte7372]

Yes thats exactly what I meant.

Thanks mate.

Just a thought, is that how other financial sites measure top performers? Or do they have individual methods of rating industries? For example, at the moment I using CBSMarketWatch (cos its free). I have searched their website but couldn't find any information on how they chose their top performers.


Cheers mate.

[soylent]

marketwatch probably goes purely on RS -- price performance to all other industries over the last 90/120/365 days?

But, I'm just guessing. Maybe somebody else knows a better answer?

-c

[DuaneG]

Hi guys,

Your both correct. Market Watch is pretty static when it comes to ranking the different sectors and industries as it is pretty much straight RS. IBD on the other hand takes a much more comprehensive approach in their rankings as they take in RS and the other variables that soylent mentioned to come up with an overall ranking (percentages and letter grades). I'm not sure if IBD allows access to the Power Tools on their website with a trial subscription, but it may be worth asking. As a technical trader, I've found it pretty cool to get a synopsis of the fundamentals without having to dig through balance sheets for the longer term holdings.

[cpatte7372]

Duane,

Thanks for the feedback.

Carlton